KUALA LUMPUR : The crude palm oil (CPO) futures market is likely to maintain a downward bias next week, weighed by expectations of rising domestic stock levels and subdued export demand.
According to palm oil trader David Ng, local inventories are anticipated to climb as Malaysia enters its peak harvesting season, a period typically associated with increased production.
“Export demand remains soft, especially from major markets like India and China, which are approaching purchases cautiously due to ample global vegetable oil supply and price competitiveness from alternatives such as soybean and sunflower oil,”
he said.
He added that sentiment in the market is currently cautious, with traders awaiting key export and production figures. “Unless there is a notable shift in demand or new policy developments from key importing nations, the market is expected to remain subdued in the near term,” he said, forecasting that prices may trend within the RM3,750 to RM3,900 per tonne range next week.
For the week ended Friday, the spot month May 2025 contract dropped RM219 to RM3,920 per tonne, while June 2025 declined RM150 to RM3,907 and July 2025 eased RM176 to RM3,881. August 2025 was down RM164 at RM3,883, September 2025 declined RM151 to RM3,888, and October 2025 settled RM138 lower at RM3,891.
Weekly trading volume contracted to 240,534 lots from 410,686 the previous week, while open interest dipped to 232,901 contracts from 239,139.
The physical CPO price for May South fell RM180 to RM4,020 per tonne.
–Bernama
