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Crude palm oil (CPO) futures on Bursa Malaysia Derivatives are anticipated to enter a bearish phase next week, as market participants engage in profit-taking activities following recent price movements.
Jim Teh, a senior palm oil trader at Interband Group of Companies, noted that the expected price correction could play a strategic role in reducing Malaysia's currently high stock levels. This market adjustment arrives just ahead of the Malaysian Palm Oil Board's (MPOB) release of September industry data, scheduled for Monday, October 12.
Teh forecasts the commodity will trade within a range of RM4,200 to RM4,300 per tonne. He emphasized that this pricing level would facilitate the clearing of high inventory positions. Regarding physical demand, interest is expected to remain steady from major global importers, including China, India, Pakistan, West Asia, the European Union, and the United States.
Offering a slightly different perspective, David Ng, a proprietary trader at Iceberg X, suggested that investors will adopt a cautious stance. The market will be closely monitoring the upcoming MPOB report to gauge inventory levels and export performance. Ng expects prices to fluctuate between RM4,500 and RM4,750 per tonne during the coming week.
In terms of weekly performance, futures contracts across the board showed gains on a Friday-to-Friday basis. The October 2026 contract edged up by RM8 to RM4,362 per tonne, while the November and December 2026 contracts rose by RM24 and RM57 respectively. Further forward, the March 2027 contract saw the highest gain, adding RM116 to settle at RM4,902 per tonne.
Trading activity saw a decrease in weekly volume to 556,937 lots from the previous week's 609,973 lots. However, open interest saw a slight improvement, rising to 337,867 contracts. In the physical market, CPO prices for October South rose by RM50 to end the week at RM4,450 per tonne.
Source: BERNAMA