CPO Futures Extend Loss For Third Day On Weaker Crude Oil Prices
By Muhammad Fawwaz Thaqif Nor Afandi
KUALA LUMPUR, June 25 (Bernama) -- Crude palm oil (CPO) futures on Bursa Malaysia Derivatives closed lower for the third consecutive trading day, pressured by weaker crude oil prices.
Mumbai-based Sunvin Group commodity research head Anilkumar Bagani said crude oil prices extended their decline on Thursday as stranded tankers resumed passing through the Strait of Hormuz following an initial accord to end the US-Iran conflict, easing supply concerns.
At the time of writing, Brent crude was down by 1.42 per cent at US$72.69 per barrel.
The market sentiment was also weighed down by expectations of stronger Malaysian palm oil production despite growing concerns over a potential Super El-Nino, he added.
"The around five per cent increase in Malaysia's palm oil production during the June 1-20 period has shrugged off fears that a potential Super El-Nino will affect output. The Southern Peninsular Palm Oil Millers' Association’s (SPPOMA) data showed that palm oil production at mills in Peninsular Malaysia's southern region rose by around 16 per cent over the same period, (offsetting) concerns over the potential impact of a Super El-Nino," he told Bernama.
At the close, the spot month July 2026 contract eased RM62 to RM4,513 per tonne, while August 2026 declined RM69 to RM4,535 and September 2026 fell RM76 to RM4,557.
The October 2026 contract slipped RM80 to RM4,579 per tonne, November 2026 decreased RM85 to RM4,599, and December 2026 shed RM86 to RM4,623.
Trading volume rose to 120,463 lots from 63,067 lots on Wednesday, while open interest dipped to 285,853 contracts from 286,122 previously.
The physical CPO price for July South edged down RM60 to RM4,530 per tonne.
-- BERNAMA