CPO Futures End Mostly Higher On Soybean Oil Gains
By Fatin Umairah Abdul Hamid
KUALA LUMPUR, Aug 5 (Bernama) -- Crude palm oil (CPO) futures on Bursa Malaysia Derivatives closed mostly higher on Wednesday as gains in rival soybean oil and bargain hunting lifted market sentiment, said CGS International Futures Malaysia Sdn Bhd.
In a note today, the derivatives broker said Malaysian palm oil exports are estimated to have risen 15 per cent to 1.38 million tonnes in July.
It said Chicago Board of Trade soybean oil futures were steady after surging nearly two per cent in the previous session following the administration of US President Donald Trump’s announcement of a more supportive biofuel policy, which increases biofuel blending into gasoline and diesel while exempting only some smaller refineries from blending mandates.
Meanwhile, Fastmarkets Palm Oil Analytics senior analyst Sathia Varqa told Bernama that traders are also awaiting the Malaysian Palm Oil Association's (MPOA) July production estimates due tomorrow, ahead of the Malaysian Palm Oil Board's (MPOB) official monthly report on Aug 10.
Citing UOB Kay Hian's July plantation survey, he said Malaysia's CPO production is estimated to grow by six to 10 per cent month-on-month in July, with output in Sabah and Sarawak projected to rise by one to five per cent, while Peninsular Malaysia is expected to record stronger growth of 10 to 14 per cent.
At the close, the October 2026 contract gained RM6 to RM4,702 per tonne, November 2026 inched up RM12 to RM4,745 per tonne, December 2026 added RM19 to RM4,783 per tonne, and the January 2027 contract rose RM23 to RM4,817 per tonne.
Meanwhile, August 2026 fell RM32 to RM4,519 per tonne and September 2026 slipped RM6 to RM4,646 per tonne.
Trading volume increased to 109,598 lots from 96,435 lots on Tuesday, while open interest climbed to 309,063 contracts from 305,012 contracts previously.
The physical CPO price for August South remained unchanged at RM4,560 per tonne.
-- BERNAMA