CPO Futures May Ease Next Week On Higher Stocks Expectations, Weaker Oil Prices
By Abdul Hamid A Rahman
KUALA LUMPUR, Oct 3 (Bernama) -- Crude palm oil (CPO) futures on Bursa Malaysia Derivatives may ease next week amid expectations of higher domestic palm oil inventories and softer crude oil prices, said Interband Group of Companies senior palm oil trader Jim Teh.
He said some analysts estimated that Malaysia’s palm oil stocks could rise to around three million tonnes or more in September.
“If realised, this could represent one of the highest inventory levels recorded in the country this year,” he told Bernama.
Teh said softer crude oil prices could weigh on CPO futures, with Brent crude falling below US$100 per barrel on Friday.
CPO futures are expected to trade between RM4,300 and RM4,400 per tonne next week, he said, adding that current price levels could encourage profit-taking.
“On physical demand, buying interest is expected to continue coming from India, Pakistan, China, the Middle East, the European Union and the United States,” he added.
Meanwhile, Iceberg X Sdn Bhd proprietary trader David Ng said market participants would look to the Malaysian Palm Oil Board’s (MPOB) latest supply and demand data, scheduled for release on Oct 12, for further direction.
“Traders will also monitor movements in soybean oil and crude oil prices, alongside any signs of improvement in palm oil export demand.
“Prices are expected to move between the RM4,400 support level and RM4,600 resistance level,” he said.
On a Friday-to-Friday basis, the October 2026 contract eased RM121 to RM4,354 per tonne, the November 2026 contract declined RM137 to RM4,441 per tonne, and the December 2026 contract fell RM137 to RM4,535 per tonne.
The January 2027 contract slid RM141 to RM4,627 per tonne, the February 2027 contract gave up RM152 to RM4,709 per tonne, and the March 2027 contract lost RM155 to RM4,786 per tonne.
Weekly trading volume contracted to 609,973 lots from 665,059 lots in the preceding week, while open interest fell to 334,658 contracts from 342,948 contracts previously.
The physical CPO price for October South dropped RM130 to RM4,400 per tonne.
-- BERNAMA