CPO Futures End Higher, Tracking Stronger Soybean Oil Prices
By Durratul Ain Ahmad Fuad
KUALA LUMPUR, Sept 1 (Bernama) -- Crude palm oil (CPO) futures on Bursa Malaysia Derivatives ended higher on Tuesday, supported by stronger Chicago Board of Trade (CBOT) soybean oil prices.
Iceberg X Sdn Bhd proprietary trader David Ng said persistent concerns over the impact of the El Niño weather pattern on output in the near term also lent support to CPO prices.
“We see prices supported above RM4,850 per tonne and resistance at RM5,050 per tonne,” he told Bernama.
Meanwhile, Mumbai-based Sunvin Group head of commodity research Anilkumar Bagani said CPO futures traded higher following a bullish rally in CBOT soybean oil and Dalian Commodity Exchange refined, bleached and deodorised palm olein and soybean oil futures during Asian trading hours, as well as stronger energy prices.
“The market is also benefited from the widened palm oil discount against gas oil.
“The market for the time-being has ignored the weaker Malaysian palm oil export during August and not much reduction scenario in the production,” he said.
Malaysian palm oil export for August 2026, estimated by Intertek Testing Services (ITS), is at 1.36 million tonnes, down by 14.85 per cent from its July estimates.
“The market is now awaiting full-month Malaysian palm oil export estimates from AmSpec, as well as production estimates from the Southern Peninsular Palm Oil Millers’ Association, UOB Kay Hian and the Malaysian Palm Oil Association, ahead of the Malaysian Palm Oil Board’s supply and demand preview later this week,” said Bagani.
Meanwhile, oil prices gained on Tuesday as fighting between the United States and Iran in West Asia renewed fears of supply disruptions from the world’s key crude-producing region.
At the time of writing, Brent crude was up 2.18 per cent at US$92.46 a barrel.
At the close, the September 2026 contract rose RM21 to RM4,649 per tonne, October 2026 strengthened RM65 to RM4,853 per tonne, and November 2026 advanced RM79 to RM4,973 per tonne.
The December 2026 contract climbed RM84 to RM5,072 per tonne, while January 2027 and February 2027 gained RM82 each to RM5,203 per tonne and RM5,237 per tonne, respectively.
Trading volume eased to 121,554 lots from 121,872 lots last Friday, while open interest advanced to 338,107 contracts from 332,943 contracts previously.
The physical CPO price for September South added RM50 to RM4,700 per tonne.
-- BERNAMA