CPO Futures Likely To Trade With Bearish Bias Next Week

By Durratul Ain Ahmad Fuad

KUALA LUMPUR, June 6 (Bernama) -- Crude palm oil (CPO) futures on Bursa Malaysia Derivatives are expected to trade with a bearish bias next week, pressured by weaker crude oil prices and cautious market sentiment ahead of a key industry report.

Iceberg X Sdn Bhd proprietary trader David Ng said traders will be closely watching the Malaysian Palm Oil Board's (MPOB) monthly report, scheduled for release on June 10, as it is expected to provide fresh clues on the market's direction.

While developments in the crude oil market will continue to be monitored, he said, they are unlikely to be the main driver of palm oil prices unless there is a significant decline in energy markets.

“The MPOB report will be the key focus for traders next week and is expected to play a significant role in determining price direction.

“However, if crude oil faces a substantial price correction, then it will likely impact bearish sentiment in the palm oil market,” he told Bernama.

Against this backdrop, Ng anticipates CPO prices to trade within a range of RM4,450 per tonne to RM4,580 per tonne next week.

On a Friday-to-Friday basis, the June 2026 contract rose RM22 to RM4,492 per tonne, while the July 2026 and the September 2026 contracts rose RM23 each to RM4,526 per tonne and RM4,584 per tonne.

The August 2026 contract increased RM19 to RM4,554 per tonne, the October 2026 contract went up RM26 to RM4,616 per tonne, and the November 2026 contract improved RM27 to RM4,647 per tonne.

The weekly trading volume strengthened to 298,261 lots from 257,062 lots last week, while open interest firmed to 293,957 contracts from 285,715 previously.

The physical CPO price for June South rose RM30 to RM4,520 per tonne.

-- BERNAMA