CPO Futures Close Lower Amid Rising Palm Oil Stocks
By Danni Haizal Danial Donald
KUALA LUMPUR, Sept 25 (Bernama) -- Crude palm oil (CPO) futures on Bursa Malaysia Derivatives closed lower on Friday, weighed down by expectations of higher palm oil stocks.
Fastmarkets Palm Oil Analytics senior analyst Sathia Varqa said CPO futures plunged to a six-week low as higher palm oil production and slower exports led to bigger inventories.
“Malaysia's end-month stocks may rise above three million tonnes in September.
“End-month Malaysian palm oil stocks remain the key driver of CPO futures, typically exhibiting an inverse relationship with prices,” he told Bernama
Meanwhile, Iceberg X Sdn Bhd proprietary trader David Ng said the weaker CPO futures were influenced by lower soybean oil and crude oil prices,
He said a stronger ringgit added further pressure to the market sentiment.
“Hence, we see prices supported above RM4,600 per tonne with resistance at RM4,750 per tonne,” he added.
At the close, the October 2026 contract fell RM89 to RM4,475 per tonne, the November 2026 contract declined RM95 to RM4,578 per tonne, and the December 2026 contract lost RM100 to RM4,672 per tonne.
The January and February 2027 contracts each slipped by RM102 to RM4,768 and RM4,861 per tonne, respectively, while March 2027 decreased by RM99 to RM4,941 per tonne.
Trading volume rose to 146,998 lots from 113,518 lots on Thursday, while open interest edged up to 342,948 contracts from 337,668 previously.
The physical CPO price for October South slipped RM50 to RM4,530 per tonne.
-- BERNAMA