Kuala lumpur: Crude palm oil (CPO) futures on Bursa Malaysia Derivatives are expected to trade with a bearish bias next week, influenced by weakness in the energy markets.

According to BERNAMA News Agency, Iceberg X Sdn Bhd proprietary trader David Ng noted that lower crude oil prices make conventional diesel cheaper, which reduces the cost advantage of biodiesel 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 also mentioned that the downside pressure on prices might be limited due to recent robust export performance. He anticipates that prices will trade between RM4,580 and RM4,750 per tonne next week.

On a Friday-to-Friday basis, various CPO futures contracts saw declines: the August 2026 contract dropped RM60 to RM4,531 per tonne; the September 2026 contract fell RM73 to RM4,604 per tonne; and the October 2026 contract decreased RM79 to RM4,643 per tonne. Additionally, the November 2026 contract dipped RM78 to RM4,675 per tonne, the December 2026 contract lost RM75 to RM4,704 per tonne, and the January 2027 contract slipped RM68 to RM4,732 per tonne.

The weekly trading volume also tumbled significantly to 363,441 lots from the previous week's 503,068 lots, while open interest decreased to 301,947 contracts from 306,540 contracts. The physical CPO price for August South decreased by RM80 to RM4,530 per tonne.