CPO Futures Seen Trading In ‘Yo-yo’ Pattern Next Week Amid Year-end Slowdown

By Fatin Umairah Abdul Hamid

KUALA LUMPUR, Dec 6 (Bernama) -- The crude palm oil (CPO) futures market is expected to trade in a volatile “yo-yo” pattern next week, as year-end holidays lead to reduced participation from international traders,  a trader said.

Interband Group of Companies senior palm oil trader Jim Teh noted that most global market participants typically take annual leave in December, resulting in thinner liquidity and wider price fluctuations.

“A yo-yo market provides a good opportunity for physical buyers, especially given the current high stock position,” he told Bernama.

He added that Malaysia’s palm oil stock data for November, to be released by the Malaysian Palm Oil Board on Dec 10, will be closely watched by the market.

On the other hand, palm oil trader David Ng expects the CPO market to trade with a bullish bias, given the recent strength in the soybean oil market and expectation of declining production in the coming weeks.

“We expect prices to trade between RM4,080 per tonne and RM4,250 per tonne next week,” he said.

Last Friday, trading on Bursa Malaysia’s derivatives market was halted due to a Globex system outage.

For the period from last Thursday to this Friday, the spot-month December 2025 contract added RM50 to RM4,095 per tonne, January 2026 contract gained RM54 to RM4,135 per tonne, and February 2026 contract increased RM62 to RM4,152 per tonne.

Meanwhile, March 2026 and April 2026 contracts edged up RM65 to RM4,168 per tonne and RM4,171 per tonne respectively, and May 2026 contract climbed RM67 to RM4,168 per tonne.

Weekly trading volume declined to 293,576 lots from 319,379 lots last week, while open interest eased to 262,698 contracts from 282,153 contracts previously.

The physical CPO price for December South rose RM50 to RM4,150 a tonne.

-- BERNAMA