Lang
Crude palm oil (CPO) futures on Bursa Malaysia Derivatives are expected to consolidate within a range of RM4,400 to RM4,500 per tonne over the coming week, as profit-selling activity is likely to cap gains despite the bearish weight of ample stockpile levels.
Jim Teh, senior palm oil trader at Interband Group of Companies, told Bernama that Malaysian palm oil inventories remained elevated following robust output in August 2026, with national production reaching approximately 2.8 million tonnes.
'We have plenty of CPO stocks; there is no shortage. I think the syndicate speculators will take profit,' Teh said, noting that speculative funds appeared positioned to lock in gains.
Teh observed that physical demand would likely stay subdued, with buyers unwilling to commit at current elevated price levels. He identified China, India, Pakistan, Middle Eastern countries, the European Union and the United States as the principal destinations where fresh demand could emerge, but only on a strictly need-to-buy basis.
'Physical demand for those buyers who only buy when there is a necessity in view of the high prices,' he said.
According to the Malaysian Palm Oil Board (MPOB), Malaysia's total palm oil stocks rose by 196,590 tonnes, or 7.48 per cent, to 2.82 million tonnes in August 2026, compared with 2.62 million tonnes the previous month. Within that figure, CPO stocks climbed 15.20 per cent, or 217,092 tonnes, to 1.64 million tonnes from 1.42 million tonnes in July 2026.
The board also reported that palm oil exports fell 7.50 per cent in August 2026 to 1.29 million tonnes, against 1.39 million tonnes in July 2026.
In contrast, David Ng, proprietary trader at Iceberg X Sdn Bhd, projected a more bullish near-term outlook for CPO, citing ongoing concerns over adverse weather conditions that could disrupt production.
On a Friday-to-Friday basis, the September 2026 contract slipped RM58 to RM4,550 per tonne, October 2026 fell RM105 to RM4,670 per tonne, and November 2026 dropped RM115 to RM4,814 per tonne. The December 2026 contract lost RM110 to RM4,944 per tonne, January 2027 declined RM99 to RM5,056 per tonne, and February 2027 eased RM79 to RM5,148 per tonne.
Weekly trading volume surged to 875,237 lots from 470,612 lots the previous week, while open interest rose to 349,906 contracts from 334,025 contracts. The physical CPO price for September South was RM30 lower at RM4,620 per tonne.
Source: BERNAMA