Lang
Crude palm oil futures on Bursa Malaysia Derivatives are expected to trade sideways with a downward bias next week as markets in both China and Malaysia close for the Chinese New Year holiday.
David Ng, a proprietary trader at Iceberg X Sdn Bhd, said the market was likely to head lower amid persistently high stock levels and weak demand seen in recent weeks.
He added that lacklustre buying interest from major importing countries, combined with ample stockpiles, would continue to limit upward momentum despite supportive cues from competing edible oils.
"We expect prices to trade between 3,950 and 4,180 ringgit per tonne next week," he told Bernama.
Jim Teh, senior palm oil trader at Interband Group, said crude palm oil futures would trade lower amid subdued trading activity due to the long Chinese New Year holiday.
He noted that the extended festive break had led to the temporary closure of many palm oil mills and refineries, while a large number of international traders were also taking extended leave.
Teh explained that stock levels in both Malaysia and Indonesia remained ample due to slow physical demand.
Nevertheless, he pointed out that some buying interest was still expected from key importing regions such as Pakistan, India, the Middle East and the European Union.
"Therefore, crude palm oil is expected to trade between 3,700 and 3,800 ringgit per tonne next week," he said.
On a week-on-week basis, Friday to Friday, the February 2026 contract fell 132 ringgit to settle at 3,950 ringgit per tonne, the March 2026 contract dropped 84 ringgit to 4,037 ringgit, and the April 2026 contract shed 104 ringgit to close at 4,050 ringgit.
The May 2026 contract declined 117 ringgit to 4,046 ringgit per tonne, the June 2026 contract lost 118 ringgit to settle at 4,040 ringgit, and the July 2026 contract fell 115 ringgit to 4,035 ringgit.
Weekly trading volume rose to 392,823 lots, up from 274,729 lots in the previous week, while open interest increased to 230,392 contracts from 219,059 previously.
The new physical price for February southern-region crude palm oil fell 80 ringgit to 4,050 ringgit per tonne.
Source: Bernama