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Crude palm oil (CPO) futures on the Bursa Malaysia Derivatives are anticipated to experience downward pressure in the upcoming week. Market analysts attribute this potential movement to expectations of swelling domestic palm oil inventories alongside weakening global crude oil prices, according to industry commentary from Interband Group of Companies senior trader Jim Teh.
Market projections suggest that Malaysia’s palm oil stockpiles could expand to approximately three million tonnes or higher for the month of September. If these estimates materialize, it would mark one of the highest inventory levels recorded nationwide throughout the current year.
Concurrently, a retreat in energy markets is expected to weigh on CPO futures sentiment. Brent crude oil fell below the US$100-per-barrel threshold on Friday, contributing to broader pressure across vegetable oil markets. Trading projections place the upcoming week's CPO futures within a range of RM4,300 to RM4,400 per tonne, with existing price levels potentially inviting profit-taking activities among market participants.
Despite market headwinds, physical demand remains active across major importing regions, including India, Pakistan, China, the Middle East, the European Union, and the United States.
Market focus will also center on upcoming data releases. According to Iceberg X Sdn Bhd proprietary trader David Ng, traders are closely awaiting supply and demand statistics scheduled for publication on October 12 by the Malaysian Palm Oil Board (MPOB). Market participants will simultaneously evaluate price trends in competing soybean oil and crude oil markets, alongside tracking potential shifts in palm oil export momentum. Support and resistance levels are anticipated between RM4,400 and RM4,600 per tonne, respectively.
Source: BERNAMA