Lang
Crude palm oil futures on Bursa Malaysia Derivatives are expected to trade within a narrow range next week, as caution prevails amid elevated stock levels.
Jim Teh, senior palm oil trader at Interband Group of Companies, said the high stock levels could offer buyers an opportunity to enter the market at favourable price levels, including buyers from China, India, Pakistan, the Middle East, the European Union and the United States.
He told Bernama: "With international traders gradually returning from the year-end holidays, prices are expected to remain confined to a range of between 3,800 and 3,900 ringgit per tonne."
Teh added that strong physical buying could help draw down stocks, which have remained at high levels following the elevated figures recorded in November.
David Ng, a trader at Kuala Lumpur-based Iceberg X Sdn Bhd, said market sentiment is likely to remain cautious, as buying interest has yet to show signs of improvement amid a seasonal slowdown in consumption.
He told Bernama: "Ample stocks continue to cap price gains, limiting the potential for a rally despite occasional technical rebounds in the market."
Ng also noted that external factors, including weak performance in related vegetable oil markets, are expected to further weigh on sentiment, as traders take their cues from declining soybean oil futures prices. He added: "In the near term, we expect crude palm oil futures to trade within a range of 3,900 to 4,080 ringgit per tonne."
Industry data released by the Malaysian Palm Oil Board (MPOB) showed that Malaysia's crude palm oil stocks rose 17.56% month on month to 1.74 million tonnes in November 2025 compared with October levels.
Weekly performance, Friday to Friday:
Weekly trading volume fell to 166,003 lots compared with 239,880 lots the previous week, while open interest rose to 259,181 contracts from 257,694 previously.
The physical price of crude palm oil for the January southern-region contract fell by 80 ringgit to 4,000 ringgit per tonne.
Source: Bernama