CPO Futures Close Lower On Concerns Over Higher Palm Oil Stocks
By Nur Athirah Mohd Shaharuddin
KUALA LUMPUR, Oct 26 (Bernama) -- Crude palm oil (CPO) futures on Bursa Malaysia Derivatives ended lower on Monday, pressured by concerns over elevated Malaysian palm oil inventories.
Iceberg X Sdn Bhd proprietary trader David Ng said expectations of strong production in October, as well as uncertainty surrounding export demand, continued to weigh on market sentiment.
“We see support around RM4,650 per tonne, while resistance is expected at RM4,850, with traders closely monitoring soybean oil and crude oil prices for further direction,” he told Bernama.
Meanwhile, Mumbai-based Sunvin Group head of commodity research Anilkumar Bagani said the lower CPO prices were also due to weakness in energy prices and related vegetable oil futures, mainly on the Dalian Commodity Exchange and the Chicago Board of Trade.
He said the focus was now once again shifting to the actual supply and demand scenario, as Malaysian palm oil end-October stocks were expected to climb further despite strong export performance, with production continuing to exceed market expectations.
Citing Intertek Testing Services data, he said Malaysia's palm oil exports for the Oct 1-25, 2026, period were estimated at 1.304 million tonnes, up 46.89 per cent from the estimated exports for the Sept 1-25 period. The market was now awaiting data from cargo surveyor Amspec Agri Malaysia for greater clarity.
“Meanwhile, the Malaysian Palm Oil Association has estimated that Malaysian palm oil production for the Oct 1-20, 2026, period was six per cent higher than that for the Sept 1-20, 2026 period,” he added.
At the close, the November 2026, December 2026 and January 2027 contracts fell RM29 to RM4,558, RM4,704 and RM4,789 per tonne, respectively.
The February 2027 contract also decreased RM29 to RM4,873 per tonne, while March 2027 eased RM28 to RM4,948 per tonne, and April 2027 slipped RM32 to RM4,998 per tonne.
Trading volume declined to 54,448 lots from 91,028 on Friday, while open interest climbed to 342,858 contracts from 341,116 previously.
The physical CPO price for November South slid RM20 to RM4,530 per tonne.
-- BERNAMA