CPO Futures Retreat After Two-day Rally On Rising Palm Oil Supply

By Muhammad Fawwaz Thaqif Nor Afandi

KUALA LUMPUR, July 15 (Bernama) -- Crude palm oil (CPO) futures on Bursa Malaysia Derivatives closed mostly lower on Wednesday amid concerns over rising palm oil production and inventories in Malaysia.

Iceberg X Sdn Bhd proprietary trader David Ng said the latest Malaysian Palm Oil Board (MPOB) data pointed to improving supply conditions, prompting expectations of ample supply and exerting downward pressure on CPO prices. “We see prices supported above RM4,500 per tonne and resistance at RM4,650,” he told Bernama.

According to the Malaysian Palm Oil Board (MPOB), Malaysia's palm oil stockpiles increased to 2.54 million tonnes in June 2026 from 2.43 million tonnes in May, while crude palm oil production rose to 1.64 million tonnes from 1.52 million tonnes a month earlier.

Mumbai-based Sunvin Group commodity research head Anilkumar Bagani said weaker biodiesel demand prospects and softer South American crude degummed soybean oil (CDSBO) free-on-board (FOB) prices also weighed on market sentiment. He added that the prolonged absence of Indonesia's B50 biodiesel allocations, coupled with the return of the European Union Deforestation Regulation (EUDR), continued to pressure palm oil prices.

At the close, the spot month July 2026 contract added RM5 to RM4,520 per tonne, while the August 2026 note climbed RM1 to RM4,530, and the September 2026 contract eased RM4 to RM4,569.

The October 2026 contract fell RM7 to RM4,601 per tonne, the November 2026 contract slid RM9 to RM4,632, and the December 2026 note slipped RM6 to RM4,665.

The trading volume declined to 88,773 lots from 108,836 lots on Tuesday, while open interest fell to 285,543 contracts from 286,418 contracts previously.

The physical CPO price for July South was up by RM10 to RM4,530 per tonne.

-- BERNAMA