CPO Futures End Lower On Weaker Crude Oil Prices, Inventory Concerns
By Durratul Ain Ahmad Fuad
KUALA LUMPUR, Nov 2 (Bernama) -- Crude palm oil (CPO) futures on Bursa Malaysia Derivatives ended lower on Monday, weighed down by weaker crude oil prices and concerns over elevated Malaysian inventories.
Iceberg X Sdn Bhd proprietary trader David Ng said losses were, however, limited by firmer Dalian Commodity Exchange (DCE) and stronger Malaysian palm oil exports in October, which provided some support.
“Last month’s Malaysian Palm Oil Board (MPOB) figures showed that Malaysia’s palm oil stocks stood at 3.5 million tonnes, a record high. Production is expected to remain high, which will impact prices negatively.
“We see immediate support around RM4,550 per tonne, while resistance is expected at RM4,750 per tonne, with market direction remaining sensitive to crude oil prices and inventory developments,” he told Bernama.
Meanwhile, Mumbai-based Sunvin Group head of commodity research Anilkumar Bagani said Malaysia’s palm oil exports in October were estimated by Intertek Testing Services at 1.65 million tonnes, an increase of 45.41 per cent from 1.13 million tonnes in September.
He said the market is now awaiting full-month export data from cargo surveyors Amspec Agri Malaysia and Societe Generale de Surveillance, as well as production estimates from the Southern Peninsular Palm Oil Millers Association, Malaysian Palm Oil Association and UOB Kay Hian, ahead of the Malaysian Palm Oil Board’s (MPOB) October 2026 supply and demand polls.
“The Malaysian government is expected to waive CPO export taxes to help ease the burden of elevated inventories and is reportedly seeking feedback from industry stakeholders.
“Until this happens, the market is likely to remain on edge,” he added.
At the close, the November 2026 contract eased RM16 to RM4,433 per tonne, December 2026 contract was down RM34 to RM4,554, January 2027 slipped RM32 to RM4,649, the February 2027 contract was RM28 lower to RM4,733, March 2027 decreased RM24 to RM4,802 and April 2027 weakened RM18 to RM4,845 per tonne.
Trading volume declined to 57,464 lots from 97,010 last Friday, while open interest fell to 334,103 contracts from 337,166 previously.
The physical CPO price for November South shed RM40 to RM4,420 per tonne.
-- BERNAMA