CPO Futures Set To Trade With Bullish Bias On Firmer Export Demand

By Muhammad Fawwaz Thaqif Nor Afandi and Abdul Hamid A Rahman

KUALA LUMPUR, Jan 17 (Bernama) -- Crude palm oil (CPO) futures on Bursa Malaysia Derivatives are expected to trade with a bullish bias next week, supported by a recent improvement in palm oil export demand and expectations of slower production growth in the coming weeks.

Kuala Lumpur-based proprietary trader David Ng of Iceberg X Sdn Bhd said firmer export performance has helped underpin market sentiment, while supply growth is likely to moderate as seasonal factors begin to take effect.

“The slower production outlook, coupled with improving export demand, is expected to provide underlying support to prices in the near term. 

“However, volatility may persist due to movements in rival oils and global macroeconomic developments,” he told Bernama.

He said prices are expected to move between RM4,000 and RM4,150 per tonne next week.

Meanwhile, Interband Group of Companies senior palm oil trader Jim Teh has a different opinion, saying that CPO futures will trade with a bearish bias because of the country’s high CPO stocks, which analysts say will reach about three million tonnes.

“We shall wait for the Malaysian Palm Oil Board (MPOB) statistical report, which will be out next month, but this one is still a long way to go," he said.

Teh said that physical demand will come from China, India, Pakistan, the Middle East, and the European Union, as well as a little from the United States.

“So these lower prices will give an opportunity for the physical buyer to buy at this attractive price level, and in a way to help us clear our high stock position,” he said.

He added that besides Malaysia, Indonesia is also holding ample crude palm oil supplies, resulting in a surplus of palm oil stocks for both countries.

On a Friday-to-Friday basis, the January 2026 contract gained RM76 to RM4,026 per tonne, February 2026 increased RM46 to RM4,057 per tonne, and March 2026 rose RM36 to RM4,072 per tonne.

The April 2026 contract edged up RM30 to RM4,079 per tonne, May 2026 strengthened RM29 to RM4,082 per tonne, and June 2026 climbed RM33 to RM4,077 per tonne.

The weekly trading volume surged to 539,268 lots from 395,181 lots last week, while open interest decreased to 249,340 contracts from 260,191 contracts previously.

The new physical CPO price for January South rose RM40 to RM4,050 a tonne.

 -- BERNAMA