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MARKET • 27/08/2026 09:08 PM

CPO Futures Close Lower Amid Weaker Soybean Futures

By Danni Haizal Danial Donald

KUALA LUMPUR, Aug 27 (Bernama) -- Crude palm oil (CPO) futures on Bursa Malaysia Derivatives closed lower on Thursday as weaker soybean oil futures trading at the Chicago Mercantile Exchange (CME) weigh down market sentiment.

Fastmarkets Palm Oil Analytics senior analyst Sathia Varqa said the sharp losses in soybean oil futures was due to steep declines in crude oil prices.

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“CPO futures buying momentum gradually faded towards the closing session, leaving the first six contract months in negative territory, while contracts from March 2027 onwards were unchanged to marginally higher,” he told Bernama.

Mumbai-based Sunvin Group Commodity Research Head Anilkumar Bagani said the mixed palm oil production estimates, coupled with a lack of fresh demand due to palm oil’s premium over soybean oil and its narrow spread against gas oil, had made buyers turned cautious.

He added that India, a key palm oil buyer, had imported nearly 1.57 million tonnes of edible vegetable oils in August, further limiting fresh demand for palm oil.

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According to Anilkumar, the Malaysian Palm Oil Association (MPOA) estimated production for Aug 1-20 at 1.08 per cent higher than the July 1-20 period, while UOB Kay Hian estimated production to be between three per cent lower and one per cent higher.

Meanwhile, the South Peninsular Palm Oil Millers’ Association (SPPOMA) data showed palm oil production in the southern peninsular region fell by nearly 4.7 per cent during Aug 1-25 compared with the July 1-25 period.

At the close, the September 2026 contract fell RM37 to RM4,593 per tonne, October 2026 declined RM45 to RM4,716 per tonne and November 2026 slipped RM36 to RM4,816 per tonne.

The December 2026 contract decreased RM24 to RM4,907 per tonne, January 2027 slid RM12 to RM4,984 per tonne and February 2027 declined RM6 to RM5,035 per tonne.

Trading volume increased to 150,594 lots from 114,373, while open interest climbed to 486,220 contracts from 348,842 contracts previously.

The physical CPO price for September South edged down by RM20 to RM4,620 per tonne.

-- BERNAMA

 

 


 

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