CPO Futures Seen Trading Higher Next Week Amid Rising Energy Prices
By Muhammad Fawwaz Thaqif Nor Afandi
KUALA LUMPUR, March 21 (Bernama) -- Crude palm oil (CPO) futures on Bursa Malaysia Derivatives are expected to trade with an upward bias next week amid the conflict in West Asia.
Iceberg X Sdn Bhd proprietary trader David Ng said the conflict has pushed energy prices higher, lending support to sentiment on palm oil.
“The ongoing war involving Iran, the United States and Israel is driving oil prices higher, which is supporting palm oil sentiment in the market.
“We see prices ranging between RM4,450 and RM4,680 (per tonne) next week,” he told Bernama.
In contrast, Interband Group of Companies senior palm oil trader Jim Teh said the market is expected to turn bearish next week amid a shortened trading period due to Aidilfitri celebrations.
Teh said the market will likely see profit-taking activities, with prices moving in the RM4,100-RM4,200 level due to higher energy prices and logistics disruption in West Asia amid the ongoing conflict, while speculators may enter the market to take advantage of price movements.
“There will be some logistical disruption to West Asia because of the war that is going on to make the speculators come in and speculate on the prices,” he said.
On stock levels, he said Malaysia currently has ample palm oil inventories, while demand is still expected from key importers such as China, Pakistan, India, the European Union and the United States.
The market was closed on Friday, March 20, for the additional Hari Raya Aidilfitri public holiday.
On a Friday-to-Thursday basis, the April 2026 contract jumped RM41 over the week to RM4,580 per tonne, May 2026 rose RM47 to RM4,619 per tonne, and June 2026 increased RM39 to RM4,611 per tonne.
The July 2026 contract gained RM26 to RM4,580 per tonne, August 2026 added RM19 to RM4,542 per tonne, and September 2026 stood at RM4,504 per tonne.
The weekly trading volume fell to 448,388 lots from 732,935 lots in the week before, while open interest edged up to 237,306 contracts on Thursday from 225,355 on Friday last week.
The physical CPO price for April South increased by RM100 to RM4,600 a tonne.
-- BERNAMA