BEARISH TRADE SEEN FOR CPO FUTURES NEXT WEEK

By Danni Haizal Danial Donald

KUALA LUMPUR, Nov 22 (Bernama) -- The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives is expected to be bearish next week owing to the expectation of rising palm oil production, said a trader.

Palm oil trader David Ng said the market performance would also be influenced by the weaker seasonal demand for palm oil.

“Hence, we expect prices to trade between RM4,000 and RM4,150 per tonne next week,” he told Bernama.

Meanwhile, Interband Group of Companies senior palm oil trader Jim Teh anticipates CPO to trade between RM3,900 and RM4,000 per tonne amid the high stock position in October 2025.

“This is a good price for the planters, in view of the stronger currency, with ringgit gaining strength,” he said.

He said palm oil demand is slowing as China shifts to buying more soybean oil from the United States, compounded by typical year-end demand softness.

“Additonally, physical demand will come from India, Pakistan, the European Union, Middle East and US,” he added.

On a weekly basis, the December 2025 contract slipped RM50 to RM4,050 per tonne, January 2026 fell RM65 to RM4,063 per tonne, and February 2026 dropped RM76 to RM4,069

March 2026 was down by RM81 to RM4,078 per tonne and April 2026 declined RM85 to RM4,082 per tonne, while the May 2026 contract stood at RM4,084 per tonne.

Weekly trading volume increased to 481,674 lots from 402,878 lots last week, while open interest edged up to 287,400 contracts from 269,476 contracts previously.

The physical CPO price for December South gained RM20 to RM4,100 a tonne.

-- BERNAMA