Crude palm oil futures could fall to RM4,400 per ton

Crude palm oil futures in Malaysia could extend their decline to RM4,400 per ton amid increasing selling pressure. RHB Research has shifted its outlook from bullish to bearish after futures prices on Bursa Malaysia fell below the key support level of RM4,650/t. Further losses could reinforce negative market sentiment.

On October 29, crude palm oil futures fell by RM69 to close at RM4,616/t. During the session, prices ranged from RM4,596 to RM4,705/t but finished near the day’s low. According to RHB Research, this movement indicates strengthening selling pressure and a loss of momentum in the previous price recovery.

Analysts noted that since reaching RM4,850/t, the market has formed a series of progressively lower price highs. Meanwhile, the Relative Strength Index (RSI) has fallen below the neutral level of 50, while futures prices remain well below their 50-day simple moving average. These indicators suggest that the bearish technical trend persists, increasing the risk of further price declines.

The nearest support level for crude palm oil futures is RM4,500/t. A break below this level could trigger a deeper correction towards RM4,400/t. If prices recover, analysts identify the main resistance levels at RM4,750 and RM4,850/t.

Amid the deteriorating technical outlook, RHB Research recommended that traders close previously opened long positions and consider short positions targeting further price declines. Analysts believe that a break below key support levels increases the risk of another wave of selling. However, the forecast is based on technical indicators as of October 29, and actual price movements will depend on subsequent market developments.

Tags: Crude palm oil, Malaysia