CPO Futures Extend Rally, Benchmark November Contract Breaches RM4,850
By Abdul Hamid A Rahman
KUALA LUMPUR, Aug 18 (Bernama) -- Crude palm oil (CPO) futures on Bursa Malaysia Derivatives ended higher on Tuesday, extending gains on stronger soybean oil prices on the Chicago Board of Trade (CBOT) and firmer crude oil prices, according to Iceberg X Sdn Bhd proprietary trader David Ng.
He said the benchmark November 2026 contract rallied for another session, breaching the RM4,850-per-tonne level.
“Persistent concerns over weather extremes and the potential impact of the El Niño phenomenon in the coming months on CPO production are also seen as near-term price drivers.
“We see prices well supported at RM4,800, with resistance at RM4,950,” he told Bernama.
Meanwhile, Mumbai-based Sunvin Group commodity research head Anilkumar Bagani said a widening palm oil-gasoil spread, with palm oil trading at a substantial discount, also supported the bullish sentiment.
“The market is also anticipating that disruptions to sunflower oil supplies from Black Sea ports could boost demand for palm oil from Asian countries, filling the supply gap left by sunflower oil,” he told Bernama.
At the close, the September 2026 contract rose RM27 to RM4,616 per tonne, October 2026 gained RM37 to RM4,754 per tonne, and November 2026 added RM39 to RM4,860 per tonne.
The December 2026 contract advanced RM40 to RM4,943 per tonne, January 2027 climbed RM37 to RM5,007 per tonne, and February 2027 increased RM31 to RM5,048 per tonne.
Trading volume increased to 165,588 lots from Tuesday’s 129,862, while open interest widened to 333,655 contracts from 328,798 previously.
The physical CPO price for September South increased by RM20 to RM4,610 per tonne.
-- BERNAMA