Lang
A trader said crude palm oil futures on Bursa Malaysia Derivatives are expected to trade with a downward bias next week, amid rising stock levels and expectations of higher production in the coming weeks.
David Ng, a proprietary trader at Kuala Lumpur-based Iceberg X Sdn Bhd, said Malaysia's stock levels are nearing three million tonnes, and total 2025 production could exceed the 20-million-tonne mark, the highest in the past three years.
He told Bernama: "We expect crude palm oil prices to trade between 3,950 and 4,100 ringgit per tonne. Market traders will be closely watching the official report from the Malaysian Palm Oil Board (MPOB), due out next Monday."
This week, crude palm oil futures traded mostly higher, driven by strength in prices on the Dalian Commodity Exchange, higher soybean oil prices on the Chicago Board of Trade, and market speculation that Indonesia may raise export levies on crude palm oil from 10% to 15% to help fund its B50 biodiesel mandate.
Comparing the last two Fridays, the January 2026 contract fell by 4 ringgit to 3,950 ringgit per tonne, while the February 2026 contract rose by 31 ringgit to 4,011 ringgit per tonne, the March 2026 contract climbed by 45 ringgit to 4,036 ringgit per tonne, the April 2026 contract jumped by 50 ringgit to 4,049 ringgit per tonne, the May 2026 contract added around 56 ringgit to reach 4,053 ringgit, and the June 2026 contract rose by 50 ringgit to 4,044 ringgit per tonne.
Weekly trading volume surged to 395,181 contracts, compared with 166,003 contracts the previous week, while open interest edged up slightly to 260,191 contracts from 259,181 previously.
The spot price for January southern-region crude palm oil rose by 10 ringgit to 4,010 ringgit per tonne.
Source: Bernama