Bearish Bias Expected For CPO Futures Next Week
By K. Naveen Prabu
KUALA LUMPUR, Aug 1 (Bernama) -- Crude palm oil (CPO) futures on Bursa Malaysia Derivatives are expected to trade with a bearish bias next week, weighed down by weakness in the energy markets.
Iceberg X Sdn Bhd proprietary trader David Ng said lower crude oil prices make conventional diesel cheaper, reducing the cost advantage of biodiesel, which is produced using palm oil.
“As a result, demand for palm oil as a biodiesel feedstock could weaken, putting pressure on CPO prices,” he told Bernama.
However, Ng said the downside pressure on prices is likely to be limited by recent robust export performance.
“We expect prices to trade between RM4,580 and RM4,750 per tonne next week,” he said.
On a Friday-to-Friday basis, the August 2026 contract declined RM60 to RM4,531 per tonne, the September 2026 contract fell RM73 to RM4,604 per tonne, and the October 2026 contract dropped RM79 to RM4,643 per tonne.
The November 2026 contract dipped RM78 to RM4,675 per tonne, the December 2026 contract lost RM75 to RM4,704 per tonne, while the January 2027 contract slipped RM68 to RM4,732 per tonne.
Weekly trading volume tumbled to 363,441 lots from 503,068 lots in the preceding week, while open interest declined to 301,947 contracts from 306,540 contracts previously.
The physical CPO price for August South decreased RM80 to RM4,530 per tonne.
-- BERNAMA