CPO Futures Close Lower Tracking Weaker Vegetable Oil Prices

By Danni Haizal Danial Donald

KUALA LUMPUR, Aug 26 (Bernama) -- Crude palm oil (CPO) futures on Bursa Malaysia Derivatives ended lower on Wednesday, tracking the weaker global vegetable oil prices following Malaysia’s public holiday yesterday.

The market was closed yesterday for the Maulidur Rasul public holiday.

Mumbai-based Sunvin Group commodity research head Anilkumar Bagani said the market was further pressured by the weaker-than-expected Malaysian palm oil export performance for Aug 1-25, coupled with a slower-than-expected pace of production decline.

“The absence of fresh demand, amid CPO trading at a premium to gasoil and at par with or above soybean oil prices, also weighed on market sentiment,” he told Bernama.

Anilkumar noted that the market is awaiting the Malaysian Palm Oil Association’s (MPOA) Aug 1-20 palm oil production data for further guidance.

According to Anilkumar, Malaysian palm oil exports for Aug 1-25 were estimated by Intertek Testing Services (ITS) at 1.05 million tonnes, down 20 per cent from the corresponding period in July.

Meanwhile, UOB Kay Hian estimated Malaysian palm oil production for Aug 1-20 to range between a three per cent decline and a one per cent increase compared with the July 1-20 period, he added.

At the close, the September 2026 contract fell RM90 to RM4,630 per tonne, October 2026 declined RM98 to RM4,761 per tonne and November 2026 slipped RM94 to RM4,852 per tonne.

The December 2026 contract decreased RM82 to RM4,931 per tonne, January 2027 slid RM68 to RM4,996 per tonne and February 2027 declined RM58 to RM5,041 per tonne.

Trading volume increased to 114,373 lots from 79,190, while open interest climbed to 348,842 contracts from 343,401 contracts previously.

The physical CPO price for September South fell by RM70 to RM4,640 per tonne.

-- BERNAMA