Kuala lumpur: The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives is projected to decline due to technical corrections, with trading expected between RM3,800 and RM3,950 per tonne, according to Interband Group of Companies senior palm oil trader Jim Teh. This outlook is influenced by a rise in palm oil stocks, which reached a 19-month high of 2.1 million tonnes in July 2025, alongside speculative investor activity driving up futures prices.
According to BERNAMA News Agency, the physical demand for palm oil is set to continue from China, Pakistan, the Middle East, and European Union countries. However, India is exhibiting cautious buying behavior as it diversifies its purchases into other oils. Another palm oil trader, David Ng, noted that the CPO market for next week is expected to exhibit a bearish bias due to the recent price increases, which might curb further purchasing. Ng anticipates prices to fluctuate between RM4,300 and RM4,450 per tonne.
Meanwhile, Palm Oil Analytics co-founder and senior analyst Sathia Varqa mentioned that market sentiment could shift positively, spurred by increased buying momentum in the second session on Friday, driven by bullish export data for August. Data from cargo surveyor Intertek Testing Services (ITS) indicated a 16 percent rise in exports for the first half of the month, while Amspec reported a 21 percent increase compared to the same period in July. Varqa highlighted that market focus next week will be on production data from August 1-20.
On a weekly basis, the August contract saw an increase of RM124 to RM4,338 per tonne, with the September 2025 contract gaining RM191 to RM4,425 per tonne, and the October 2025 contract climbing RM227 to RM4,427 per tonne. The November 2025 contract advanced RM237 to RM4,511 per tonne, December 2025 was up RM244 to RM4,528 per tonne, and January 2026 increased RM237 to RM4,526 per tonne.
The weekly trading volume rose to 472,033 lots from 354,336 lots the previous week, though open interest decreased to 249,718 contracts from 311,976 contracts. The physical CPO price for August South increased by RM150 to RM4,400 per tonne.