CPO Futures End Mostly Higher Amid Steady Energy Prices, B50 Biodiesel Support

By Nurunnasihah Ahmad Rashid

KUALA LUMPUR, July 24 (Bernama) -- Crude palm oil (CPO) futures on Bursa Malaysia Derivatives ended mostly higher on Friday, lifted by steady energy prices, gains in rival edible oils and expectations of tighter Indonesian supplies following the implementation of the B50 biodiesel mandate.

Mumbai-based Sunvin Group commodity research head Anilkumar Bagani said the benchmark contract extended its upward momentum, as market sentiment continued to be underpinned by firmer Dalian Commodity Exchange (DCE) refined, bleached and deodorised (RBD) palm olein futures, Indonesia’s biodiesel policy, and renewed demand from China.

He said palm oil’s discount to gas oil had widened to US$445 per tonne while its price remained competitive against soyabean oil, rapeseed oil and sunflower oil, making the tropical oil more attractive to buyers.

“The El-Nino weather phenomenon has continued supporting bullish sentiments in palm oil but an immediate impact from it is yet to be visible on palm oil production in the tropical region,” he told Bernama.

At the close, the August 2026 contract slipped RM5 to RM4,591 per tonne, but the September 2026 contract gained RM14 to RM4,677 per tonne and the October 2026 contract rose RM12 to RM4,722 per tonne.

The November 2026 contract increased RM12 to RM4,753 per tonne, the December 2026 contract advanced RM11 to RM4,779 per tonne, and the January 2027 contract added RM7 to RM4,800 per tonne.

Trading volume declined to 118,819 lots from 137,068 lots on Thursday, while open interest widened to 306,540 contracts from 300,098 previously.

The physical CPO price for August South increased RM10 to RM4,610 per tonne.

-- BERNAMA