CPO Futures End Lower Amid Soybean Oil Weakness, Softer Exports
By Nurunnasihah Ahmad Rashid
KUALA LUMPUR, Sept 2 (Bernama) -- Crude palm oil (CPO) futures on Bursa Malaysia Derivatives ended mostly lower on Wednesday, tracking weakness in soybean oil futures and after recent softer exports of palm oil.
Iceberg X Sdn Bhd proprietary trader David Ng told Bernama that CPO prices were expected to remain supported above RM4,900 per tonne, with resistance seen at RM5,050.
Fastmarkets Palm Oil Analytics senior analyst Dr Sathia Varqa said CPO futures traded lower before paring some losses to close mixed, as profit-taking and expectations of rising near-term supply weighed on the market. However, expectations of stronger physical export demand, particularly from India, helped cushion the decline, he added.
He noted that Indian buyers were building inventories ahead of the November festive season, while palm oil had gained a competitive edge over sunflower oil, which continued to face significant logistical disruptions.
Selling pressure also emerged following two consecutive trading days of strong gains, which were driven by a surge in energy prices and gains in related soybean oil futures on the Chicago Mercantile Exchange, he added.
At the close, the September 2026 contract eased RM1 to RM4,648 per tonne, while October 2026 weakened RM22 to RM4,831, and November 2026 fell RM15 to RM4,958.
The December 2026 contract dropped RM7 to RM5,065 per tonne, January 2027 dipped RM1 to RM5,148, while February 2027 gained RM6 to RM5,209.
Trading volume slipped to 94,460 lots from 121,554 lots on Tuesday, while open interest increased to 339,030 contracts from 338,107 contracts yesterday.
The physical CPO price for September South fell RM30 to RM4,670 per tonne.
-- BERNAMA