PALMOILMAGAZINE, KUALA LUMPUR – Crude palm oil (CPO) futures on Bursa Malaysia Derivatives edged lower on Friday (20/2/2026), pressured by weaker soyoil prices and mounting concerns over potential oversupply in the global market.
The benchmark May 2026 contract fell by RM12 per ton, or 0.29%, to RM4,105 per ton at the midday break. The pullback reflects external pressure from the broader vegetable oil complex, which remains volatile.
Despite the daily decline, the contract has still gained around 2% on a weekly basis, putting it on track to snap a two-week losing streak. The weekly performance suggests underlying resilience, even as short-term sentiment turns cautious.
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In global markets, soyoil prices on the Chicago Board of Trade dropped approximately 0.5%, adding downward pressure on palm oil. Soyoil movements are closely watched by CPO traders, as both commodities compete in the international vegetable oil market.
Meanwhile, trading activity on the Dalian Commodity Exchange remains suspended due to the Lunar New Year holiday, limiting regional transaction volumes and contributing to muted price dynamics.
Market participants are also awaiting the release of Malaysian palm oil export estimates from cargo surveyors, which could provide fresh direction for prices. The data is expected to serve as a key catalyst, particularly amid ongoing concerns about global supply expansion.
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Overall, while prices corrected at the end of the week, the broader weekly structure remains constructive. The next phase of price movement will likely depend on export performance, competing vegetable oil trends, and broader global fundamentals. (P3)
