KUALA LUMPUR: The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives is expected to trade with an upside bias next week on the prospects of weaker output going forward.

Palm oil dealer David Ng said traders will be closely monitoring the flood situation in Malaysia and the Malaysian Palm Oil Board (MPOB) supply and demand monthly report next week.

"Regarding the flood situation, it will depend on the weather pattern. It is difficult to tell whether it will prolong next week but the market is expecting output to be weak for this month.The floods will likely contribute to higher commodity prices. Therefore, we expect the commodity to trade between RM5,100 and RM5,250 per tonne" he told Bernama.

Citing independent inspection company AmSpec Agri Malaysia, he said Malaysian palm oil exports for Nov 1-30 fell 10.35 per cent month-on-month due to the seasonally lower demand for palm oil.

Meanwhile, South Peninsular Palm Oil Millers Association (SPPOMA) data shows that southern peninsular mills palm oil production estimates for Nov 1-30 versus Oct 1-31 were down by 5.30 per cent.

"The Malaysian Palm Oil Association (MPOA) expects Malaysia's palm oil production to decline by 10.33 per cent for the Nov 1-30 period he added.

On a Friday-to-Friday basis, the spot-month December 2024 contract jumped RM98 to RM5,336 per tonne, January 2025 climbed by RM117 to RM5,242 and February 2025 expanded by RM108 to RM5,128.

The March 2025 contract gained RM80 to RM4,983 per tonne, April 2025 rose RM47 to RM4,819 and the May 2025 contract added RM22 to RM4,662.

Total weekly volume advanced to 441,315 lots from 402,631 lots in the preceding week, while open interest improved to 234,629 contracts from 227,559 contracts a week earlier.

The physical CPO price for December South gained RM80 to RM5,380 per tonne.