Lang
KUALA LUMPUR, Aug 29 — Crude palm oil (CPO) futures traded on Bursa Malaysia Derivatives are expected to maintain a bullish bias in the coming week, underpinned by firm fundamentals and expectations of tighter supply.
David Ng, a proprietary trader at Iceberg X Sdn Bhd, said prices could find additional support from concerns over palm oil output, as El Niño-related hot and dry weather conditions threaten to weigh on yields.
'The market could also draw support from concerns over palm oil production amid El Niño-related hot and dry weather conditions, which could potentially affect yields. Next week, we expect prices to trade within the range of RM4,850 and RM5,000,' he told Bernama.
Separately, Jim Teh, senior palm oil trader at Interband Group of Companies, said CPO futures are expected to remain bullish next week, buoyed by current stock levels in Malaysia and Indonesia.
'Physical demand is expected to come mainly from China, India, Pakistan, the European Union, West Asia and the United States,' he added.
On a weekly basis, the September 2026 contract dropped RM163 to settle at RM4,628 per tonne, while the October 2026 contract slipped RM146 to RM4,788 and the November 2026 contract eased RM124 to RM4,894.
The December 2026 contract lost RM89 to RM4,988 per tonne, the January 2027 contract fell RM51 to RM5,067, and the February 2027 contract edged down RM20 to RM5,121.
Weekly trading volume declined to 466,029 lots from 682,863 lots in the prior week, while open interest slipped to 332,943 contracts from 342,115 contracts previously.
The physical CPO price for September South fell RM120 to RM4,650 per tonne.
Source: Bernama / Malaysia-China Insight