Kuala lumpur: Crude palm oil (CPO) futures on Bursa Malaysia Derivatives are anticipated to trade with a bearish bias next week, influenced by weaker crude oil prices and an abundance of palm oil stocks.

According to BERNAMA News Agency, Interband Group of Companies senior palm oil trader Jim Teh highlighted that the recent decline in crude oil prices will impact CPO futures, which closely follow movements in the energy market. Crude oil prices have decreased to approximately US$73 to US$74 per barrel, and similarly, CPO futures are expected to dip next week. Malaysia currently holds about 2.43 million tonnes in palm oil stocks, leading to an expected trading range for CPO between RM4,250 and RM4,350 per tonne. Physical demand for CPO is predicted to arise from countries such as India, Pakistan, China, West Asia, the European Union, and the United States.

Iceberg X Sdn Bhd proprietary trader David Ng concurred with the outlook, noting that CPO futures will likely remain under pressure due to the weaker crude oil prices following a peace deal in West Asia. Consequently, CPO prices are projected to range between RM4,450 and RM4,650 per tonne.

On a Friday-to-Friday basis, the July 2026 contract experienced a decline of RM90 to RM4,504 per tonne. The August 2026 contract decreased by RM83 to RM4,539 per tonne, and the September 2026 contract fell by RM78 to RM4,568 per tonne. The October 2026 contract saw a reduction of RM77 to RM4,591 per tonne, while the November 2026 contract dipped by RM78 to RM4,611 per tonne. The December 2026 contract slid RM79 to RM4,631 per tonne.

The weekly trading volume increased to 424,149 lots from 330,455 lots the previous week, although open interest slightly decreased to 284,997 contracts from 287,112. Additionally, the physical CPO price for July South contracted by RM30 to RM4,530 per tonne.