CPO Futures Expected To Stay Bullish Next Week
By Abdul Hamid A Rahman
KUALA LUMPUR, Aug 22 (Bernama) -- Crude palm oil (CPO) futures on Bursa Malaysia Derivatives are expected to trade with a bullish bias next week, supported by persistent weather concerns and Indonesia’s B50 biodiesel programme.
CPO futures rallied for five consecutive sessions this week, with the benchmark November 2026 contract closing above RM5,000 per tonne on Friday, reflecting strong upward momentum.
Iceberg X Sdn Bhd proprietary trader David Ng said persistent weather concerns in key palm oil-producing regions could affect production and tighten supplies, lending support to CPO prices in the near term.
“Meanwhile, Indonesia’s B50 biodiesel programme is also expected to provide support to the market by increasing domestic consumption of palm oil,” he told Bernama.
Indonesia’s B50 programme mandates a blend of 50 per cent palm oil-based biodiesel and 50 per cent conventional diesel, potentially increasing palm oil consumption for domestic energy use and reducing supplies available for export.
Ng expects CPO prices to trade between RM4,950 per tonne and RM5,100 per tonne next week.
On a Friday-to-Friday basis, the September 2026 contract rose RM215 to RM4,791 per tonne, October 2026 gained RM224 to RM4,934 per tonne, and November 2026 added RM211 to RM5,018 per tonne.
The December 2026 contract advanced RM198 to RM5,077 per tonne, January 2027 climbed RM182 to RM5,118 per tonne, and February 2027 increased RM167 to RM5,141 per tonne.
Weekly trading volume rose to 682,863 lots from 582,348 lots in the preceding week, while open interest widened to 342,115 contracts from 327,575 contracts previously.
The physical CPO price for September South increased by RM50 to RM4,770 per tonne.
-- BERNAMA