Lang
Crude palm oil (CPO) futures traded on Bursa Malaysia Derivatives are expected to face profit-taking pressure next week as inventories remain elevated in both Malaysia and Indonesia, according to a senior industry trader.
Jim Teh, senior palm oil trader at Interband Group of Companies, said the benchmark contract is likely to trade within a range of RM4,500 to RM4,600 per tonne in the coming week.
Teh noted that recent speculative activity had lifted CPO futures prices, prompting physical buyers, particularly in India, to step back from the market and wait for prices to ease. 'The situation has also weighed on purchases of other palm oil products, as physical buyers remain cautious at current price levels,' he told Bernama.
Market participants are set to focus on the Malaysian Palm Oil Board's August 2026 industry data, due for release on September 10. Teh said the figures, especially on stock levels and exports, will provide clearer direction for the market.
On the demand side, Teh indicated that buying interest is expected to come from China, India, Pakistan, Middle Eastern countries, the European Union, and to a lesser extent the United States.
On a week-on-week basis, the September 2026 contract fell RM20 to settle at RM4,608 per tonne, while the October 2026 contract declined RM13 to RM4,775 per tonne. The November 2026 contract, however, added RM35 to reach RM4,929 per tonne.
Further along the forward curve, the December 2026 contract surged RM66 to RM5,054 per tonne, the January 2027 contract jumped RM88 to RM5,155 per tonne, and the February 2027 contract soared RM106 to RM5,227 per tonne.
Weekly trading volume rose to 470,612 lots from 466,029 lots the previous week, while open interest edged up to 334,025 contracts from 332,943 contracts.
The physical CPO reference price for September South was unchanged at RM4,650 per tonne.
Source: Bernama