CPO Futures Extend Losses Amid Weaker Crude Oil Prices

By Danni Haizal Danial Donald

KUALA LUMPUR, Sept 22 (Bernama) -- Crude palm oil (CPO) futures on Bursa Malaysia Derivatives extended losses to close lower on Tuesday, as lower crude oil prices weighed down market sentiment.

Fastmarkets Palm Oil Analytics senior analyst Sathia Varqa said CPO futures fell by almost one per cent as crude oil prices reversed, triggering fresh selling pressure.

“CPO futures initially advanced on bargain hunting and strength in crude oil prices. However, sentiment deteriorated after benchmark Brent crude oil reversed course, falling by nearly 2.8 per cent to around US$98 per barrel during late Asian trading hours.

“The sell-off accelerated following reports that Iran had offered to reopen the Strait of Hormuz within seven days, raising hopes of renewed negotiations and easing concerns over supply disruptions,” he told Bernama.

At the time of writing, Brent crude oil prices dropped 1.43 per cent to US$98.99 per barrel.

Meanwhile, the Malaysian Palm Oil Council (MPOC) expects CPO prices to remain firm above RM4,700 per tonne in October, and likely throughout the rest of the year, underpinned by weather uncertainty and favourable energy markets.

“The main downside risks are an easing in energy prices and further stock accumulation, as palm oil production typically reaches its seasonal peak in September or October,” it added.

At the close, the October 2026 contract fell RM49 to RM4,639 per tonne, the November 2026 contract declined RM48 to RM4,731 per tonne and the December 2026 contract slipped RM47 to RM4,810 per tonne.

Meanwhile, the January 2027 contract weakened by RM45 to RM4,884 per tonne, February 2027 slid RM40 to RM4,952 per tonne and March 2027 contracted RM28 to RM5,016 per tonne.

Trading volume increased to 144,008 lots from 87,334 on Monday, while open interest rose to 337,546 contracts from 333,717 previously.

The physical CPO price for September South slipped RM30 to RM4,670 per tonne.

-- BERNAMA