CPO Futures End Higher For Fourth Straight Session On Supply Concerns, Soybean Oil Gains
By Abdul Hamid A Rahman
KUALA LUMPUR, Aug 20 (Bernama) -- Crude palm oil (CPO) futures on Bursa Malaysia Derivatives ended higher on Thursday, extending gains for a fourth consecutive session.
The market was supported by stronger soybean oil prices on the Chicago Board of Trade (CBOT) and concerns over future supply, said Iceberg X Sdn Bhd proprietary trader David Ng.
He said CPO continued to gain upside momentum, with prices potentially testing RM5,000 per tonne.
“Market sentiment remains well supported by higher soybean oil prices and persistent weather-related concerns over production. Recent strength in exports has also added to the positive price momentum,” Ng told Bernama.
He said CPO prices are expected to find support above RM4,900 with resistance seen at RM5,050.
Meanwhile, Mumbai-based Sunvin Group commodity research head Anilkumar Bagani said Bursa Malaysia Derivatives CPO futures remained supported by bullish momentum in Chinese vegetable oil futures and firmer energy prices.
He said concerns over potential supply constraints also supported prices, particularly with Indonesia’s proposed B50 biodiesel mandate and the risk of El Niño-related production losses.
“Market sentiment was further supported by Chinese buying this week, as well as prospects of demand shifting from sunflower oil to palm oil amid disruptions at Black Sea ports,” Bagani told Bernama.
At the close, the September 2026 contract rose RM80 to RM4,734 per tonne, October 2026 gained RM78 to RM4,872 per tonne, and November 2026 added RM68 to RM4,961 per tonne.
The December 2026 contract advanced RM53 to RM5,025 per tonne, January 2027 climbed RM37 to RM5,070 per tonne, and February 2027 increased RM24 to RM5,095 per tonne.
Trading volume decreased to 124,014 lots from 142,285, while open interest widened to 338,827 contracts from 336,503 previously.
The physical CPO price for September South increased by RM80 to RM4,720 per tonne.
-- BERNAMA