Lang
Crude palm oil (CPO) futures traded on Bursa Malaysia Derivatives are projected to maintain an upward trajectory in the upcoming week. This positive outlook is primarily driven by persistent adverse weather conditions in critical growing areas alongside the rollout of Indonesia's B50 biodiesel mandate.
The market recently completed a strong run, recording gains across five consecutive trading sessions. The benchmark contract for November 2026 settled above RM5,000 per tonne at the end of the week, indicating solid bullish momentum.
David Ng, a proprietary trader at Iceberg X Sdn Bhd, noted that ongoing weather-related challenges across major palm oil plantations could hinder output and restrict supply, thereby providing strong support to market prices in the near term. Furthermore, he highlighted that Indonesia’s B50 policy—which mandates a 50% blend of palm oil-based biofuel with 50% conventional diesel—will likely elevate local energy consumption while reducing the volume of palm oil available for international export markets.
Based on these supply-demand dynamics, Ng anticipates benchmark CPO prices to fluctuate within a range of RM4,950 to RM5,100 per tonne over the coming week.
Source: Bernama