CPO Futures Likely To Be Volatile Next Week On Long Holiday

By Muhammad Fawwaz Thaqif Nor Afandi

KUALA LUMPUR, May 30 (Bernama) -- Crude palm oil (CPO) futures on Bursa Malaysia Derivatives are expected to be volatile next week due to the long public holiday, a trader said.

Interband Group of Companies senior palm oil trader Jim Teh said trading activity is expected to fluctuate next week as most international traders would be away for the long public holiday, adding that the market is likely to be volatile and trade between RM4,200 and RM4,250 per tonne.

“Market sentiment for next week would also be supported by Indonesian authorities’ investigations into some exporters over alleged under-invoicing activities,” he told Bernama.

According to news reports, Indonesia’s government is investigating 20 companies, with a primary focus on 10 large companies, all operating in the CPO industry.

Jim said Malaysia’s palm oil stock position remained high at 2.4 million tonnes, while physical demand is expected from China, India, Pakistan, Middle Eastern countries, European Union member states and the United States.

On a Friday-to-Friday basis, the June and July 2026 contracts rose RM40 to RM4,470 and RM4,503 per tonne, respectively, while the August 2026 contract increased RM49 to RM4,535 per tonne.

The September 2026 contract edged up RM59 to RM4,561 per tonne, October 2026 climbed RM65 to RM4,590 per tonne, and November 2026 improved RM68 to RM4,620 per tonne.

The weekly trading volume fell to 257,062 lots from 614,453 lots last week, while open interest firmed to 285,715 contracts from 280,499 previously.  

The physical CPO price for June South stood at RM4,490 per tonne.

Bursa Malaysia and its subsidiaries will be closed on Monday, June 1, and Tuesday, June 2, in conjunction with the Yang di-Pertuan Agong's Birthday and the Wesak Day replacement holiday, and trading will resume on Wednesday, June 3.

-- BERNAMA