PALMOILMAGAZINE, KUALA LUMPUR – Crude palm oil (CPO) futures on the Bursa Malaysia Derivatives Exchange are expected to remain range-bound next week as traders weigh strong inventory levels against concerns over weaker production prospects.
Senior palm oil trader Jim Teh of the Interband Group of Companies projected that CPO prices will trade between RM4,200 and RM4,300 per ton. His outlook is supported by Malaysia’s relatively high palm oil inventories, as reflected in the latest data from the Malaysian Palm Oil Board (MPOB).
According to Bernama on Sunday (June 14, 2026), Teh believes the current price range could stimulate buying interest from major palm oil-importing nations.
“Prices at these levels are likely to attract buyers from India, China, Pakistan, the Middle East, the European Union, and the United States,” he said.
A more bullish forecast was offered by David Ng, an independent trader based in Kuala Lumpur and associated with Iceberg X Sdn Bhd. Ng expects CPO futures to trend higher as market participants increasingly focus on the possibility of lower production in the coming months.
“We expect prices to move within the RM4,400 to RM4,550 per ton range next week,” Ng said.
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Weekly Market Performance
Despite differing forecasts for the week ahead, CPO futures recorded a weekly decline across most contract months.
Comparing Friday-to-Friday performance, the June 2026 contract fell RM105 to close at RM4,387 per ton, while the July 2026 contract declined RM91 to RM4,435 per ton.
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The August 2026 contract dropped RM73 to RM4,511 per ton, and the September 2026 contract eased RM79 to RM4,475 per ton.
Meanwhile, the October 2026 contract lost RM72 to settle at RM4,544 per ton, while the November 2026 contract fell RM76 to close at RM4,571 per ton.
Although prices weakened during the week, trading activity increased substantially. Weekly trading volume surged to 418,814 lots from 298,261 lots in the previous week, reflecting heightened market participation amid ongoing price volatility.
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In contrast, open interest declined to 283,513 contracts from 293,957 contracts previously, suggesting that some traders chose to liquidate positions following recent market fluctuations.
In the physical market, the June South CPO contract fell RM50 to RM4,470 per ton.
Looking ahead, market participants are expected to remain focused on developments in Malaysian palm oil production, purchasing trends from major importing countries, and price movements of competing vegetable oils. The interplay between still-healthy inventory levels and the prospect of tighter production is likely to remain the key driver of market sentiment in the coming week. (P2)
