Lang
Crude palm oil futures are expected to remain under pressure this week, largely due to persistent concerns over rising domestic stock levels amid weak demand and improving production.
Palm oil trader David Ng said domestic crude palm oil stocks are likely to increase as the country enters its peak harvest season, which typically brings a seasonal rise in output.
"At the same time, exports haven't shown any real signs of recovery, particularly from major buyers such as India and China, who are taking a cautious approach due to ample global supplies of vegetable oils and price competition from other oils such as soybean oil and sunflower oil," he said.
"This combination of factors is likely to keep weighing on prices," he told Bernama.
He noted that traders are adopting a wait-and-see approach ahead of upcoming export and production data.
He added: "Unless there is a significant shift in demand or a surprise move from major importing countries, overall market sentiment is expected to remain negative in the near term."
He also said: "I expect crude palm oil prices to trade within a lower range of between 3,750 and 3,900 ringgit per tonne next week."
On a weekly basis (Friday-to-Friday), the spot May 2025 contract fell 219 ringgit to 3,920 ringgit per tonne, the June 2025 contract dropped 150 ringgit to 3,907, while the July 2025 contract declined 176 ringgit to 3,881.
The August 2025 contract also fell 164 ringgit to 3,883 ringgit per tonne, the September 2025 contract dropped 151 ringgit to 3,888, and the October 2025 contract fell 138 ringgit to 3,891.
Weekly trading volume shrank to 240,534 lots compared with 410,686 lots the previous week, while open interest fell to 232,901 contracts from 239,139.
The physical price for May-delivery crude palm oil in the south fell 180 ringgit to 4,020 ringgit per tonne.
Source: Bernama