CPO Futures End Higher On Firmer Soybean Oil Futures, Export Outlook
By Danni Haizal Danial Donald
KUALA LUMPUR, Oct 22 (Bernama) -- Crude palm oil (CPO) futures on Bursa Malaysia Derivatives ended higher on Thursday, tracking firmer soybean oil futures on the Chicago Board of Trade (CBOT), while stronger palm oil export estimates lent further support to market sentiment.
Mumbai-based Sunvin Group commodity research head Anilkumar Bagani said palm oil exports showed significant percentage growth despite lower export volumes in September 2026.
“Malaysian palm oil export for the Oct 1-20 period was estimated by cargo surveyor Intertek Testing Services (ITS) at 1.13 million tonnes, up by 58.51 per cent and by AmSpec at 1.08 million tonnes, up by 78.41 per cent from their respective export estimates for Sept 1-20 period,” he told Bernama.
He also said that while exports remained strong, uncertainty persisted over the possibility of an export tax waiver for Malaysian palm oil.
“There has been no official word from the Malaysian government on a possible export tax waiver. As a result, market focus shifted to higher inventories, while the likelihood of Indonesian palm oil export taxes falling by two brackets in November has capped further gains,” he said.
Meanwhile, the Malaysian Palm Oil Council (MPOC) said cumulative palm oil exports rose by 4.3 per cent year-on-year in the first nine months of 2026, despite a 12.1 per cent decline to 1.12 million tonnes in September.
The council said limited vessel availability in the Strait of Malacca and increased competition from Indonesia also weakened monthly exports.
“However, the weak export performance in September is likely to be temporary. Shipments are projected to rise significantly between October and December with more vessels available and tighter soft oil supplies,” MPOC said in a statement.
At the close, the November 2026 contract gained RM29 to RM4,551 per tonne, the December 2026 rose RM33 to RM4,695, and January 2027 added RM25 to RM4,792.
The February 2027 contract advanced RM17 to RM4,885 per tonne, March 2027 edged up RM10 to RM4,967, and April 2027 inched up RM6 to RM5,020.
Trading volume slid to 78,548 lots from 119,654 on Wednesday, while open interest climbed to 336,766 contracts from 335,340 previously.
The physical CPO price for November South lost RM20 to RM4,530 per tonne.
-- BERNAMA