CPO Futures Likely To Maintain Bullish Bias Next Week On Tighter Supply Outlook
By Muhammad Fawwaz Thaqif Nor Afandi
KUALA LUMPUR, Aug 29 (Bernama) -- Crude palm oil (CPO) futures on Bursa Malaysia Derivatives are expected to maintain a bullish bias next week, supported by firm fundamentals and expectations of tighter supply.
Iceberg X Sdn Bhd proprietary trader David Ng said prices could also draw support from concerns over palm oil production amid El Niño-related hot and dry weather, which could affect yields.
“The market could also draw support from concerns over palm oil production amid El Niño-related hot and dry weather conditions, which could potentially affect yields.
“Next week, we expect prices to trade within the range of RM4,850 and RM5,000,” he told Bernama.
Separately, Interband Group of Companies senior palm oil trader Jim Teh said CPO futures are expected to remain bullish next week, supported by current CPO stock levels in Malaysia and Indonesia.
“Physical demand is expected to come mainly from China, India, Pakistan, the European Union, West Asia and the United States,” he added.
On a Friday-to-Friday basis, the September 2026 contract fell RM163 to RM4,628 per tonne, while October 2026 declined RM146 to RM4,788 and November 2026 eased RM124 to RM4,894.
The December 2026 contract fell RM89 to RM4,988 per tonne, January 2027 lost RM51 to RM5,067 and February 2027 edged down RM20 to RM5,121.
Weekly trading volume fell to 466,029 lots from 682,863 lots in the preceding week, while open interest declined to 332,943 contracts from 342,115 contracts previously.
The physical CPO price for September South fell RM120 to RM4,650 per tonne.
-- BERNAMA