CPO Futures To Trade With Bearish Bias Next Week On Weaker Crude Oil, Ample Stocks

By Muhammad Fawwaz Thaqif Nor Afandi

KUALA LUMPUR, June 27 (Bernama) -- Crude palm oil (CPO) futures on Bursa Malaysia Derivatives are expected to trade with a bearish bias next week, pressured by weaker crude oil prices and ample palm oil stocks.

Interband Group of Companies senior palm oil trader Jim Teh said the recent decline in crude oil prices will weigh on CPO futures, which have been tracking movements in the energy market.

“Crude oil has come down to about US$73 to US$74 per barrel. Similarly, CPO futures, which have been following the energy market, will be down next week.

“Stocks are ample, with Malaysia holding about 2.43 million tonnes. Therefore, CPO is expected to trade between RM4,250 and RM4,350 per tonne,” he told Bernama.

Teh said physical demand for CPO is expected to come from India, Pakistan, China, West Asia, the European Union and the United States.

Echoing the outlook, Iceberg X Sdn Bhd proprietary trader David Ng said CPO futures are expected to be under pressure next week due to weaker crude oil prices following the peace deal in West Asia.

“Therefore, it is expected that CPO prices will range between RM4,450 and RM4,650 per tonne,” he said.

On a Friday-to-Friday basis, the July 2026 contract fell RM90 to RM4,504 per tonne, the August 2026 contract declined RM83 to RM4,539 per tonne, and the September 2026 contract was RM78 lower to RM4,568 per tonne.

The October 2026 contract slipped RM77 to RM4,591 per tonne, the November 2026 contract dipped RM78 to RM4,611 per tonne, and the December 2026 contract slid RM79 to RM4,631 per tonne.

The weekly trading volume rose to 424,149 lots from 330,455 lots last week, while open interest edged down to 284,997 contracts from 287,112 previously.

The physical CPO price for July South contracted RM30 to RM4,530 per tonne.

-- BERNAMA