Kuala lumpur: Crude palm oil (CPO) futures on Bursa Malaysia Derivatives are expected to trade sideways with a bearish bias next week due to the Chinese New Year holidays, with both China and Malaysia markets closed for the celebration. Proprietary trader David Ng of Iceberg X Sdn Bhd indicated a bearish bias is likely amid persistently high stock levels and weak demand in recent weeks.

According to BERNAMA News Agency, the subdued buying interest from key importing countries, along with ample inventories, is expected to continue capping upside momentum despite supportive cues from rival edible oils. Ng predicted that prices would trade between RM3,950 and RM4,180 per tonne next week.

Meanwhile, senior palm oil trader Jim Teh of Interband group of companies noted that the CPO futures market will face bearish trends amid slower trading activities due to the extended Chinese New Year holidays. The long festive break has resulted in temporary closures of many palm oil mills and factories, with a significant number of international traders on extended leave.

Teh pointed out that stock levels in Malaysia and Indonesia remain ample because of slow physical demand. Nevertheless, he mentioned that some buying interest is anticipated from key importing regions such as Pakistan, India, Middle East countries, and the European Union. He expects CPO prices to range between RM3,700 and RM3,800 per tonne for the next week.

On a Friday-to-Friday basis, the February 2026 contract declined RM132 to RM3,950 per tonne, March 2026 slipped RM84 to RM4,037, and April 2026 shrank by RM104 to RM4,050. The May 2026 contract decreased RM117 to RM4,046 per tonne, June 2026 lost RM118 to RM4,040, and July 2026 was down RM115 to RM4,035.

The weekly trading volume increased to 392,823 lots from 274,729 lots last week, while open interest rose to 230,392 contracts from 219,059 contracts previously. The new physical CPO price for February South was lower by RM80 at RM4,050 per tonne.