CPO Futures Snap Five-day Losing Streak To Close Mostly Higher
By Danni Haizal Danial Donald
KUALA LUMPUR, Sept 24 (Bernama) -- Crude palm oil (CPO) futures on Bursa Malaysia Derivatives snapped a five-day losing streak to end mostly higher on Thursday, as market sentiment improved following India’s decision to cut import duties on crude and refined vegetable oils, coupled with stronger crude oil prices.
Fastmarkets Palm Oil Analytics senior analyst Sathia Varqa said India's decision to cut import duties on crude and refined vegetable oils, including palm oil, had initially raised expectations of stronger buying interest.
“While lower import duties should stimulate crude edible oil imports, sunflower oil appears to be the main beneficiary due to its zero-duty status, potentially allowing it to gain market share at the expense of palm oil and soybean oil,” he told Bernama.
According to reports, India has cut the basic import duty on crude and refined edible oils, including palm, soybean and sunflower oils, in a move aimed at lowering prices ahead of the peak festive season.
It said vegetable oil prices in India had risen nearly 20 per cent over the past year, with the duty reduction expected to ease prices and boost consumption during major religious festivals from September to November, when demand for sweets, snacks and fried foods typically increases.
Meanwhile, Sathia said deferred contract months from March to August posted stronger gains of more than RM40, with some contracts rising nearly RM70.
“All deferred contract months settled above the RM5,000-per-tonne level, reflecting a tighter longer-term supply outlook under El Niño weather conditions, while near-term supply remains relatively comfortable,” he added.
At the close, the October 2026 contract fell RM37 to RM4,564 per tonne and the November 2026 contract declined RM12 to RM4,673 per tonne.
However, the December 2026 contract edged up RM4 to RM4,772 per tonne, the January 2027 contract increased by RM19 to RM4,870 per tonne, February 2027 advanced RM34 to RM4,963 per tonne, and March 2027 gained RM43 to RM5,040 per tonne.
Trading volume shrank to 113,518 lots from 173,211 lots on Wednesday, while open interest inched up to 337,668 contracts from 334,386 previously.
The physical CPO price for September South slipped RM30 to RM4,580 per tonne.
-- BERNAMA