Malaysia’s CPO Futures Expected to Decline on Profit-Taking After Recent Price Rally

KUALA LUMPUR, JULY 2026 – Crude palm oil futures on Bursa Malaysia Derivatives are expected to move lower in the coming week as traders secure profits following the market’s recent rally.

Interband Group of Companies senior palm oil trader Jim Teh said CPO futures had risen to around RM4,700 per tonne as crude oil prices reached approximately US$100 per barrel. The simultaneous increase encouraged speculative buying and helped push palm oil contracts higher.

However, Teh expects speculative market participants to lock in their gains after the recent surge, potentially creating renewed volatility in what he described as a “yo-yo” market.

He projected that CPO futures would trade within a range of RM4,400 to RM4,500 per tonne during the coming week.

Profit-taking normally occurs when traders sell contracts after a significant price increase to secure their returns. The activity may create short-term downward pressure even when demand and other market fundamentals remain supportive.

Physical demand from major importing markets is expected to continue supporting palm oil prices. Key buyers include China, India, Pakistan, the Middle East, the European Union and the United States.

Nevertheless, ample palm oil inventories in Malaysia and Indonesia could limit further price gains by ensuring that sufficient supplies remain available to the international market.

Malaysia and Indonesia are the world’s dominant palm oil-producing countries. Changes in their output, inventories and export activity can therefore significantly influence global edible oil prices.

During the latest Friday-to-Friday trading period, the August 2026 CPO contract increased by RM62 to RM4,591 per tonne.

The September 2026 contract rose by RM112 to RM4,677 per tonne, while the October 2026 contract gained RM125 to RM4,722 per tonne.

Contracts for later delivery also recorded strong increases.

The November 2026 contract advanced by RM123 to RM4,753 per tonne, while the December 2026 contract climbed RM116 to RM4,779 per tonne.

The January 2027 contract increased by RM103 to RM4,800 per tonne, indicating strong buying interest across the futures market.

Weekly market activity also expanded considerably. Total trading volume rose to 503,068 lots from 402,028 lots in the preceding week.

Open interest strengthened to 306,540 contracts from 286,716 contracts previously, showing that a larger number of positions remained active at the end of the trading period.

In the physical market, the August South CPO price increased by RM70 to RM4,610 per tonne. The movement showed that the recent strength extended beyond futures contracts and was also reflected in physical palm oil prices.