CPO Futures Set To See Profit-Taking Next Week Amid High Stockpiles
By Fatin Umairah Abdul Hamid
KUALA LUMPUR, Nov 14 (Bernama) -- Crude palm oil (CPO) futures on Bursa Malaysia Derivatives are expected to witness profit-taking next week amid elevated stock levels, said a trader.
On Tuesday, the Malaysian Palm Oil Board (MPOB) reported that Malaysia’s total palm oil stocks rose 3.15 per cent, or 110,610 tonnes, to 3.62 million tonnes in October from 3.51 million tonnes in September.
Meanwhile, CPO inventory increased 7.46 per cent, or 161,379 tonnes, to 2.32 million tonnes last month from 2.16 million tonnes in September.
Interband Group of Companies senior palm oil trader Jim Teh said energy prices have also eased after speculative activity, which had previously driven prices higher, subsided.
“On the demand front, physical buying is expected to come mainly from China, India, Pakistan, the Middle East and the European Union, with comparatively lower demand from the United States,” he told Bernama.
Meanwhile, Iceberg X Sdn Bhd proprietary trader David Ng expected CPO futures to remain supported by improving production prospects and movements in competing vegetable oil prices, although record-high inventories could cap further upside.
CPO futures settled the week higher, supported by bullish price expectations shared by leading analysts at a palm oil conference held in Indonesia from Nov 11-13.
During the week, CPO futures traded mostly higher, propped up by stronger soybean oil and crude oil prices, bargain-hunting activities and bullish market sentiment following the palm oil conference.
On a Friday-to-Friday basis, the November 2026 contract gained RM131 to RM4,180 per tonne, the December 2026 contract strengthened RM179 to RM4,326 per tonne, and January 2027 contract improved RM204 to RM4,462 per tonne.
The February 2027 contract rose RM209 to RM4,565 per tonne, the March 2027 contract increased RM221 to RM4,658 per tonne, and the April 2027 contract climbed RM231 to RM4,728 per tonne.
Weekly trading volume jumped to 595,534 lots from 512,442 lots the previous week, while open interest grew to 454,619 contracts on Friday from 332,934 contracts a week earlier.
The physical CPO price for November South rose RM100 to RM4,200 per tonne.
-- BERNAMA