CPO Futures Seen Under Pressure as Rising Malaysian Stocks Weigh on Market

Crude palm oil (CPO) futures are expected to trend lower next week, mainly due to profit-taking pressure and elevated inventory levels. Market sentiment has been weighed down by the latest data released by the Malaysian Palm Oil Board (MPOB), which showed that Malaysia’s CPO stocks remained high in November 2025.

According to MPOB figures, Malaysia’s palm oil inventories rose 17.56% month on month, increasing from 1.47 million tonnes in October to 1.74 million tonnes in November. The sharp rise in stocks has reinforced concerns about near-term oversupply, particularly as export demand has yet to show a strong recovery.

Industry participant Teh told Bernama that physical demand is expected to come from India, Pakistan, the European Union, the Middle East and the United States. However, he added that prices are likely to stay under pressure, forecasting CPO prices to trade in the range of 3,800 to 4,000 ringgit per tonne in the coming week.

One palm oil trader  expects the futures market to remain bearish, citing persistent worries over rising inventories. On a week-on-week basis, the December 2025 contract fell 115 ringgit to 3,980 ringgit per tonne, while the January and February 2026 contracts declined to 4,003 ringgit and 4,018 ringgit per tonne, respectively. Southern Malaysia spot CPO prices for December delivery also weakened, falling 120 ringgit to 4,030 ringgit per tonne.