CPO Futures Close Lower As Weak Soybean Oil, Higher Stock Expectations Weigh

By Nurunnasihah Ahmad Rashid

KUALA LUMPUR, Sept 3 (Bernama) -- Crude palm oil (CPO) futures on Bursa Malaysia Derivatives ended lower on Thursday, tracking weakness in soybean oil futures, said a dealer.

Mumbai-based Sunvin Group commodity research head Anilkumar Bagani said the absence of fresh destination buying, coupled with Indonesia’s announcement to retain the B50 biodiesel mandate next year instead of moving to B60, had limited gains in palm oil futures.

He said expectations of a surge in Malaysian palm oil stocks at the end of August also weighed on market sentiment.

“We estimate Malaysian palm oil stocks at the end of August to surge by four per cent from July to 2.735 million tonnes, with production expected to decline by two per cent and exports by more than five per cent,” he told Bernama.

Bagani said the market is awaiting the Malaysian Palm Oil Association’s and UOB Kay Hian’s full August palm oil production estimates, as well as agencies’ forecasts for the Malaysian Palm Oil Board’s August supply, demand and stocks data.

At the close, the September 2026 contract fell RM13 to RM4,635 per tonne, October 2026 weakened RM63 to RM4,768 per tonne, and November 2026 slipped RM54 to RM4,904 per tonne.

The December 2026 contract dropped RM47 to RM5,018 per tonne, January 2027 decreased RM41 to RM5,107 per tonne, and February 2027 dropped RM40 to RM5,169.

Trading volume rose to 137,648 lots from 94,460 lots on Wednesday, while open interest decreased to 338,419 contracts from 339,030 contracts yesterday.

The physical CPO price for September South was unchanged at RM4,670 per tonne.

-- BERNAMA