Kuala lumpur: Crude palm oil (CPO) futures on Bursa Malaysia Derivatives are projected to decrease next week, influenced by elevated stock levels and profit-taking activities.

According to Bernama News Agency, Interband Group of Companies senior palm oil trader Jim Teh highlighted that data from the Malaysian Palm Oil Board (MPOB) indicates Malaysia's palm oil stocks were at 2.3 million tonnes in April, surpassing the previous month's figures.

Driven by the substantial stock position, CPO futures are anticipated to trade on a bearish trend next week, with prices possibly fluctuating between RM4,200 and RM4,350 per tonne. Market speculators are also likely to capitalize on the ongoing geopolitical tensions involving the United States, Iran, and Israel. Furthermore, physical demand is expected from key importing countries such as China, India, Pakistan, and several Middle Eastern nations, as they continue to build up their stockpiles.

David Ng, a proprietary trader with Iceberg X Sdn Bhd, mentioned that despite the bearish outlook, CPO futures might trade with a slight upward bias due to the recent surge in crude oil prices. The rise in crude oil prices has lifted palm oil prices, as the commodity is widely used as a biofuel feedstock. Consequently, the market might trade between RM4,300 and RM4,480 per tonne.

At the time of writing, Brent crude had increased by 2.49 percent to US$108.30 per barrel. On a Friday-to-Friday basis, the May 2026 contract decreased by RM98 to RM4,380 per tonne, while subsequent contracts also experienced declines. The weekly trading volume rose to 493,990 lots from 435,410 lots the previous week, and open interest increased to 285,554 contracts from 281,027 contracts. The physical CPO price for May South decreased by RM190 to RM4,440 per tonne.