CPO FUTURES EXPECTED TO TRADE WITH BULLISH BIAS NEXT WEEK

By Fatin Umairah Abdul Hamid

KUALA LUMPUR, Oct 11 (Bernama) -- The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives is expected to trade with a slightly bullish bias next week, supported by Indonesia’s B50 biodiesel programme, said palm oil trader David Ng.

“We expect CPO prices to trade between RM4,500 and RM4,650 per tonne next week,” he told Bernama.

Meanwhile, CIMB Securities Sdn Bhd reiterated that Indonesia’s reaffirmation of its plan to launch the B50 biodiesel mandate by mid-2026, coupled with their expectation of seasonally lower production from November 2025 to February 2026 following the October peak, is likely to keep CPO prices elevated.

“CPO prices elevated within the RM4,000 a tonne to 4,500 a tonne range for the rest of 2025.

“We have raised our CPO price forecasts by RM130 a tonne to RM4,330 a tonne for 2025 and by RM100 a tonne to RM4,200 a tonne for 2026,” the investment bank said in a note.

Indonesia, the world’s largest palm oil producer, will implement its B50 biodiesel programme in the second half of 2026, seen as a move to eliminate the country’s need to import diesel in the coming years.

On a weekly basis, the October 2025 contract rose RM68 to RM4,468 a tonne, November 2025 increased RM78 to RM4,496 a tonne and December 2025 added RM102 to RM4,544 a tonne.

January 2026 and February 2026 gained RM108 to RM4,565 a tonne and RM4,556 a tonne respectively while March 2026 edged up RM114 to RM4,530 a tonne.

Weekly trading volume rose to 470,418 lots from 373,167 lots last week, while open interest climbed to 282,064 contracts from 273,808 previously.

At the physical market, October South increased RM80 to RM4,500 a tonne.

-- BERNAMA