CPO Futures Close Higher On Stronger Export Demand, Energy Prices
By Zufazlin Baharuddin
KUALA LUMPUR, Oct 14 (Bernama) -- Crude palm oil (CPO) futures on Bursa Malaysia Derivatives extended their gains to close higher for the third consecutive day on Wednesday, supported by stronger October export demand.
Iceberg X Sdn Bhd proprietary trader David Ng said the firmer energy prices were also lending support to palm oil market sentiment, although record-high domestic inventories continued to limit gains.
“CPO is widely used as a feedstock for biodiesel production. So when energy prices rise, demand for biodiesel could increase, which in turn supports demand for CPO,” he told Bernama.
According to cargo surveyor Amspec Agri Malaysia, Malaysia’s palm oil exports expanded 37.73 per cent, or 134,760 tonnes, to 491,954 tonnes during Oct 1-10 from 357,194 tonnes in the corresponding period of September.
Meanwhile, independent inspection company Intertek Testing Services reported that exports increased 33.51 per cent, or 131,776 tonnes, to 525,071 tonnes during Oct 1-10, compared with 393,295 tonnes during Sept 1-10.
On another note, the Malaysian Palm Oil Board reported that Malaysia’s total palm oil stocks rose by 691,835 tonnes, or 24.54 per cent, to 3.51 million tonnes in September this year from 2.82 million tonnes a month earlier.
At the close, the October 2026 contract rose RM29 to RM4,427 per tonne, the November 2026 contract edged up RM1 to RM4,560 per tonne, and the December 2026 contract increased RM18 to RM4,700 per tonne.
Meanwhile, the January 2027 contract added RM23 to RM4,810 per tonne, February 2027 gained RM25 to RM4,900 per tonne, and March 2027 advanced RM18 to RM4,978 per tonne.
Trading volume surged to 124,058 lots from 109,117 on Tuesday, while open interest rose to 335,045 contracts from 331,818 previously.
The physical CPO price for October South added RM30 to RM4,500 per tonne.
-- BERNAMA