Lang
KUALA LUMPUR – Crude palm oil (CPO) futures on Bursa Malaysia Derivatives are projected to maintain their upward momentum in the coming week, driven by persistent market anticipation of tighter supply conditions beginning November.
Dr. Sathia Varqa, a senior analyst at Fastmarkets Palm Oil Analytics, noted that market participants are actively incorporating these expected supply constraints into CPO futures prices. He highlighted key data points for traders to monitor: 'the export figures for August 1-20 and the Southern Peninsular Palm Oil Millers’ Association’s (SPPOMA) production data for the same period.'
On a Friday-to-Friday comparison, contract movements saw varied performance. The August 2026 contract recorded a slight increase of RM1, settling at RM4,528 per tonne. Conversely, the September 2026 contract experienced a decline of RM30, closing at RM4,576 per tonne. October 2026, however, posted a gain of RM33, reaching RM4,710 per tonne.
Longer-dated contracts showed more significant gains, reflecting the forward supply concerns. The November 2026 contract advanced RM72 to RM4,807 per tonne, while December 2026 climbed RM94 to RM4,879 per tonne. The January 2027 contract saw the largest jump, rising RM107 to RM4,936 per tonne.
Market activity increased considerably, with weekly trading volume surging to 582,348 lots from 484,473 lots in the prior week. Open interest also saw a substantial increase, reaching 327,575 contracts from the previous 112,427 contracts. Meanwhile, the physical CPO price for August South registered a decrease of RM20, settling at RM4,520 per tonne.
Source: BERNAMA