Crude palm oil (CPO) futures on Bursa Malaysia Derivatives are expected to trade sideways with a slight bearish bias next week due to the Chinese New Year holidays, as both Malaysian and Chinese markets will be closed.
David Ng, a proprietary trader at Iceberg X Sdn Bhd, said the market faces pressure from high stock levels and weak demand in recent weeks. Subdued buying from key importing countries, combined with ample inventories, is likely to limit any price gains despite support from competing edible oils. He expects CPO prices to trade between RM3,950 and RM4,180 per tonne next week.
Jim Teh, senior palm oil trader at Interband Group, noted that trading will slow further because many mills, factories, and international traders are on extended leave during the festive period. Stock levels in Malaysia and Indonesia remain high due to weak physical demand, though some buying is expected from Pakistan, India, the Middle East, and the EU. He predicts prices will range between RM3,700 and RM3,800 per tonne next week.
On a Friday-to-Friday basis, February 2026 CPO fell RM132 to RM3,950 per tonne, March 2026 dropped RM84 to RM4,037, and April 2026 declined RM104 to RM4,050. May 2026 eased RM117 to RM4,046, June 2026 lost RM118 to RM4,040, and July 2026 fell RM115 to RM4,035.
Weekly trading volume rose to 392,823 lots from 274,729 lots last week, while open interest increased to 230,392 contracts from 219,059 contracts. Meanwhile, the new physical CPO price for February South decreased RM80 to RM4,050 per tonne.
