CPO Futures Seen Lower Next Week On Profit-taking After Recent Rally

By Nurunnasihah Ahmad Rashid

KUALA LUMPUR, July 25 (Bernama) -- Crude palm oil (CPO) futures on Bursa Malaysia Derivatives are expected to trade lower next week as profit-taking is likely to emerge after the recent rally despite crude oil prices remaining elevated.

Interband Group of Companies senior palm oil trader Jim Teh said CPO futures had climbed to about RM4,700 per tonne alongside crude oil prices, which reached about US$100 per barrel, prompting speculative buying.

However, he expects syndicate speculators to lock in gains next week, describing the market as a “yo-yo” market.

“The trading range will be between RM4,400 and RM4,500 per tonne next week,” he told Bernama.

Teh said that although physical demand from key importing countries, including China, India, Pakistan, the Middle East, the European Union and the United States, would continue to support the market, ample palm oil inventories in Malaysia and Indonesia are likely to cap further gains.

On a Friday-to-Friday basis, the August 2026 contract rose RM62 to RM4,591 per tonne, September 2026 added RM112 to RM4,677 per tonne, and October 2026 jumped RM125 to RM4,722 per tonne.

The November 2026 contract advanced RM123 to RM4,753 per tonne, December 2026 increased RM116 to RM4,779 per tonne, and January 2027 improved RM103 to RM4,800 per tonne.

Weekly trading volume grew to 503,068 lots from 402,028 lots in the preceding week, while open interest strengthened to 306,540 contracts on Friday from 286,716 contracts previously.

The physical CPO price for August South gained RM70 to RM4,610 per tonne.

-- BERNAMA