Kuala lumpur: Crude palm oil (CPO) futures on Bursa Malaysia Derivatives are expected to see profit-taking next week amid high stock levels in Malaysia and Indonesia, said a dealer.

According to BERNAMA News Agency, Interband Group of Companies senior palm oil trader Jim Teh indicated that CPO futures are expected to trade between RM4,500 and RM4,600 per tonne next week. Speculative activity had pushed CPO futures prices higher, prompting physical buyers such as India to hold back purchases and wait for futures prices to ease. The situation also affected buying of other palm oil products as physical buyers remain cautious at current price levels.

Teh mentioned that market participants would closely monitor the Malaysian Palm Oil Board's August 2026 industry data, scheduled for Sept 10, as it would provide further indications on the market's direction, particularly concerning stock levels and exports.

Teh pointed out that physical demand is expected to see buying interest from China, India, Pakistan, Middle Eastern countries, European Union countries, and, to a lesser extent, the United States. On a Friday-to-Friday basis, the September 2026 contract fell RM20 to RM4,608 per tonne, October 2026 declined RM13 to RM4,775 per tonne, while November 2026 gained RM35 to RM4,929 per tonne.

Additionally, the December 2026 contract surged RM66 to RM5,054 per tonne, January 2027 jumped RM88 to RM5,155 per tonne, and February 2027 soared RM106 to RM5,227 per tonne. Weekly trading volume increased to 470,612 lots from 466,029 lots in the preceding week, while open interest improved to 334,025 contracts from 332,943 contracts previously. The physical CPO price for September South was unchanged at RM4,650 per tonne.