CPO Futures Close Mixed On Inventory Concerns, Sluggish Demand

By Abdul Hamid A Rahman

KUALA LUMPUR, Sept 28 (Bernama) -- Crude palm oil (CPO) futures on Bursa Malaysia Derivatives closed mixed on Monday, as concerns over rising inventories and sluggish demand were partly offset by support from rival vegetable oils and crude oil prices.

Iceberg X Sdn Bhd proprietary trader David Ng said the spot-month October 2026 contract fell RM9 per tonne, reflecting continued caution among market participants.

“Prospects of improving production have raised concerns over a potential build-up in inventories, adding pressure to an already cautious market.

“Meanwhile, demand from key importing countries remained relatively subdued, providing limited support to prices. Traders are closely monitoring export performance for signs of stronger buying interest, particularly from major consumers such as India and China,” he told Bernama.

Nevertheless, Ng said external factors could cushion downside risks, including movements in rival vegetable oils and crude oil prices, which could influence palm oil’s competitiveness in the global edible oils and biodiesel markets.

“We see prices supported above RM4,550 per tonne, while resistance is pegged at RM4,700 per tonne,” he said.

At the close, the October 2026 contract fell RM9 to RM4,466 per tonne, while the November 2026 contract declined RM22 to RM4,556 per tonne. The December 2026 contract eased RM8 to RM4,664 per tonne.

The January 2027 contract rose RM6 to RM4,774 per tonne, February 2027 gained RM15 to RM4,876 per tonne, while March 2027 increased RM27 to RM4,968 per tonne.

Trading volume fell to 92,860 lots from 146,998 lots on Friday, while open interest declined to 338,007 contracts from 342,948 previously.

The physical CPO price for October South slipped RM30 to RM4,500 per tonne.

-- BERNAMA