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Crude palm oil (CPO) futures on Bursa Malaysia Derivatives are anticipated to trade with caution in the coming week. Market analysts predict that profit-taking will likely emerge, potentially overshadowing the impact of firmer energy prices driven by ongoing geopolitical tensions in West Asia.
Jim Teh, a senior palm oil trader at Interband group of companies, highlighted that Malaysia's substantial palm oil inventory levels, which reached 3.51 million tonnes in September 2026, could dampen market sentiment. Consequently, he forecasts CPO prices to fluctuate between RM4,100 and RM4,200 per tonne as investors look to lock in profits after recent gains.
Teh observed that physical demand from major buyers China and India remains cautious due to current price levels. However, steady interest is still expected from Pakistan, Middle Eastern markets, the European Union, and the United States.
David Ng, a proprietary trader at Iceberg X, echoed the sentiment of range-bound trading for the upcoming week. He noted that market participants will be closely monitoring fresh export estimates, production prospects, and the price movements of competing soybean oil and crude oil. Ng identified a technical support level at RM4,600 per tonne and resistance at RM4,800, suggesting that a sustained break above the resistance ceiling could signal further upside potential.
In weekly performance, the November 2026 contract rose by RM51 to close at RM4,587 per tonne, while the December 2026 contract gained RM57 to reach RM4,733. The January 2027 contract strengthened by RM49 to RM4,818 per tonne. Gains continued across longer-dated contracts, with February and March 2027 both climbing RM50 to RM4,902 and RM4,976 respectively, and April 2027 advancing RM48 to settle at RM5,030.
Trading activity saw weekly volume slip to 538,346 lots from the previous week's 604,284 lots. However, open interest grew to 341,116 contracts from 337,867. In the physical market, the price for November South CPO gained RM50 to reach RM4,550 per tonne.
Source: BERNAMA