Profit-taking Seen Weighing On CPO Futures Next Week, Prices At RM4,400-RM4,500 Per Tonne
By Siti Noor Afera Abu
KUALA LUMPUR, Sept 12 (Bernama) -- Crude palm oil (CPO) futures on Bursa Malaysia Derivatives are expected to trade between RM4,400 per tonne and RM4,500 per tonne next week, with profit-taking likely to weigh on the market amid ample palm oil stocks.
Interband Group of Companies senior palm oil trader Jim Teh said Malaysia’s palm oil stocks remained high following strong production in August 2026, with the country’s output reaching about 2.8 million tonnes.
“We have plenty of CPO stocks; there is no shortage. I think the syndicate speculators will take profit,” he told Bernama.
Teh said physical demand would likely remain cautious as buyers were reluctant to purchase at elevated prices, with demand expected to come mainly from China, India, Pakistan, Middle Eastern countries, the European Union and the United States.
“Physical demand for those buyers who only buy when there is a necessity in view of the high prices,” he said.
According to the Malaysian Palm Oil Board (MPOB), Malaysia’s total palm oil stocks rose by 196,590 tonnes, or 7.48 per cent, to 2.82 million tonnes in August 2026 from 2.62 million tonnes a month earlier.
MPOB said CPO stocks increased 15.20 per cent, or 217,092 tonnes, to 1.64 million tonnes in August 2026 from 1.42 million tonnes in July 2026.
Palm oil exports declined 7.50 per cent in August 2026 to 1.29 million tonnes from 1.39 million tonnes a month earlier, the board said.
Meanwhile, Iceberg X Sdn Bhd proprietary trader David Ng expects CPO prices to remain bullish in the near term, supported by ongoing concerns over adverse weather conditions that could affect production.
On a Friday-to-Friday basis, the September 2026 contract fell RM58 to RM4,550 per tonne, October 2026 declined RM105 to RM4,670 per tonne, while November 2026 trimmed RM115 to RM4,814 per tonne.
The December 2026 contract slid RM110 to RM4,944 per tonne, January 2027 was down RM99 to RM5,056 per tonne, and February 2027 edged down RM79 to RM5,148 per tonne.
Weekly trading volume soared to 875,237 lots from 470,612 lots in the preceding week, while open interest improved to 349,906 contracts from 334,025 contracts previously.
The physical CPO price for September South was RM30 lower at RM4,620 per tonne.
-- BERNAMA