CPO futures expected to stay bullish next week
KUALA LUMPUR: Crude palm oil (CPO) futures on Bursa Malaysia Derivatives are expected to trade with a bullish bias next week, supported by persistent weather concerns and Indonesia’s B50 biodiesel programme.
Crude palm oil (CPO) futures on Bursa Malaysia Derivatives are predicted to exhibit a bullish trend next week, driven by ongoing weather concerns and Indonesia's B50 biodiesel programme. The benchmark November 2026 contract closed above RM5,000 per tonne on Friday, indicating a strong upward momentum. Proprietary trader David Ng from Iceberg X Sdn Bhd highlighted that persistent weather issues in key palm oil-producing regions could impact production and reduce supplies, thereby supporting CPO prices in the near term.
Indonesia's B50 biodiesel programme, which mandates a blend of 50% palm oil-based biodiesel and 50% conventional diesel, is also anticipated to bolster the market by boosting domestic consumption of palm oil and decreasing export-ready supplies. Ng forecasts CPO prices to fluctuate between RM4,950 and RM5,100 per tonne in the upcoming week.
Over the past week, Friday-to-Friday contracts have risen between RM215 and RM218, with September 2026 reaching RM4,791, October 2026 at RM4,934, November 2026 at RM5,018, December 2026 at RM5,077, January 2027 at RM5,118, and February 2027 at RM5,141 per tonne. Trading volume surged to 682,863 lots from 582,348 lots the previous week, while open interest expanded to 342,115 contracts from 327,575 contracts. The September South physical CPO price increased by RM50 to RM4,770 per tonne.
Written by urgent.news from New Straits Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
