CPO Futures Expected To Trade Cautiously Next Week Ahead Of MPOB Report
By Durratul Ain Ahmad Fuad
KUALA LUMPUR, Nov 7 (Bernama) -- Crude palm oil (CPO) futures on Bursa Malaysia Derivatives are expected to trade cautiously next week as market players await the Malaysian Palm Oil Board’s (MPOB) October palm oil supply and demand report scheduled for release on Nov 10.
Iceberg X Sdn Bhd proprietary trader David Ng said the report is expected to show another month of rising stockpiles, with Malaysian palm oil inventories potentially nearing a record high.
“Hence, we expect prices to trade between RM4,200 per tonne and RM4,400 per tonne next week,” he told Bernama.
Meanwhile, Interband Group of Companies senior palm oil trader Jim Teh said CPO futures are expected to trade within a range of RM4,150 per tonne to RM4,250 per tonne next week, with trading likely to be subdued due to the shortened trading week following the Deepavali public holiday on Monday.
“We expect some technical correction, with prices likely to remain within this range amid high stock levels of 3.51 million tonnes and ahead of MPOB’s October report,” he said.
On physical demand, he said buying interest was expected to come mainly from China and the Middle East, with some demand from India, the European Union and the United States.
According to the Reuters Poll, Malaysia’s palm oil end-stocks for October were estimated to rise 6.8 per cent to 3.75 million tonnes from 3.51 million tonnes in September, while production was projected to increase 3.8 per cent to 2.20 million tonnes from 2.12 million tonnes.
Exports were forecast to rise 42.8 per cent to 1.60 million tonnes from 1.12 million tonnes, while imports were expected to decline to 50,000 tonnes from 58,000 tonnes.
Meanwhile, Mumbai-based Sunvin Group head of commodity research Anilkumar Bagani estimated Malaysia’s palm oil end-stocks at 3.81 million tonnes in October, up 8.47 per cent from 3.51 million tonnes in September.
He said production is expected to increase 3.8 per cent and exports 41 per cent, while imports and domestic consumption are also projected to rise.
For the week just ended, CPO futures traded lower, weighed down by weaker soybean oil futures and concerns over record-high Malaysian inventories, which continued to dampen market sentiment and limit buying interest.
On Friday, CPO futures on Bursa Malaysia Derivatives extended its losses, with the benchmark January 2027 contract breaking below RM4,300 per tonne.
On a Friday-to-Friday basis, the November 2026 contract fell RM400 to RM4,049 per tonne, the December 2026 contract decreased RM441 to RM4,147 per tonne, the January 2027 contract slid RM423 to RM4,258 per tonne, the February 2027 contract was RM405 lower at RM4,356 per tonne, the March 2027 contract weakened RM389 to RM4,437 per tonne, and the April 2027 contract shed RM366 to RM4,497 per tonne.
Weekly trading volume jumped to 512,442 lots from 363,163 lots the previous week, while open interest slipped to 332,934 contracts on Friday from 337,166 contracts a week earlier.
The physical CPO price for November South dropped RM360 to RM4,100 per tonne.
Bursa Malaysia and its subsidiaries will be closed on Monday, Nov 9, for the Deepavali replacement holiday.
-- BERNAMA