By Muhammad Fawwaz Thaqif Nor Afandi
KUALA LUMPUR, Sept 19 (Bernama) -- Crude palm oil (CPO) futures on Bursa Malaysia Derivatives are expected to trade higher next week, supported by expectations of firmer crude oil prices amid ongoing geopolitical tensions.
Interband Group of Companies senior palm oil trader Jim Teh said the CPO futures market was tracking movements in crude oil prices, which could rise further due to tensions in West Asia.
“CPO prices look like they are following energy prices, with crude oil potentially rising due to the West Asia tensions. Therefore, the trading range for CPO futures next week is expected to be between RM4,500 and RM4,600 per tonne,” he told Bernama.
Teh said Malaysia’s palm oil stocks stood at 2.8 million tonnes in August, among the highest levels recorded this year, which could limit further price gains.
On physical demand, he said purchases were expected to come mainly from India, Pakistan, China, the Middle East and the European Union, with some demand also expected from the United States.
Meanwhile, Iceberg X Sdn Bhd proprietary trader David Ng said the market was likely to trade sideways next week in the absence of clear bullish or bearish cues.
He said the lack of market catalysts was likely to keep traders cautious and limit significant price movements.
“We expect prices next week to trade between RM4,850 and RM5,000,” he added.
On a Friday-to-Friday basis, the October 2026 contract rose RM28 to RM4,698 per tonne, while November fell RM14 to RM4,800 and December slipped RM46 to RM4,898.
January 2027 fell RM73 to RM4,983 per tonne, February declined RM94 to RM5,054, while March stood at RM5,113.
Weekly trading volume fell to 561,289 lots from 875,237 lots in the preceding week, while open interest declined to 339,480 contracts from 349,906 contracts previously.
The physical CPO price for September South rose RM30 to RM4,650 per tonne.
Bursa Malaysia and its subsidiaries were closed on Wednesday in conjunction with Malaysia Day.
-- BERNAMA