Kuala lumpur: Crude palm oil (CPO) futures on Bursa Malaysia Derivatives are anticipated to trade within a range next week due to caution surrounding elevated stock levels. Interband Group of Companies senior palm oil trader Jim Teh indicated that the high stock levels might provide an opportunity for buyers to enter the market at favorable price points, attracting buyers from regions such as China, India, Pakistan, the Middle East, the European Union, and the United States.
According to BERNAMA News Agency, Teh mentioned that with international traders gradually returning from the year-end holidays, prices are expected to stay within the RM3,800 to RM3,900 per tonne range. He noted that stronger physical buying could help reduce inventories, which have remained high after the elevated stock levels recorded in November.
Kuala Lumpur-based proprietary trader David Ng of Iceberg X Sdn Bhd explained that market sentiment is likely to remain cautious, as buying interest has yet to show signs of improvement amid a seasonal slowdown in consumption. Ng highlighted that ample inventories continue to limit price gains, constraining upside potential despite occasional technical rebounds in the market. He added that external factors, including the subdued performance of related vegetable oil markets, are expected to weigh on sentiment, as traders monitor softer soybean oil future prices. Ng projected that in the near term, CPO future prices may trade within a range of RM3,900 to RM4,080 per tonne.
Industry data from the Malaysian Palm Oil Board showed that Malaysia's CPO stockpiles rose 17.56 percent month-on-month to 1.74 million tonnes in November 2025. On a Friday-to-Friday basis, the January 2026 contract decreased by RM106 to RM3,954 per tonne, February 2026 slipped by RM102 to RM3,980 per tonne, and March 2026 fell by RM98 to RM3,991 per tonne. The April 2026 contract dropped by RM86 to RM3,999 per tonne, May 2026 decreased by RM75 to RM3,997, and June 2026 lost RM85 to RM3,994 per tonne. The weekly trading volume declined to 166,003 lots from 239,880 lots in the previous week, while open interest increased to 259,181 contracts from 257,694 contracts previously. The new physical CPO price for January South fell by RM80 to RM4,000 a tonne.