CPO Futures Pressured By High Inventories, Softer Demand

By Abdul Hamid A Rahman

KUALA LUMPUR, Sept 30 (Bernama) -- Crude palm oil (CPO) futures on Bursa Malaysia Derivatives closed lower today amid concerns over rising domestic inventories and weaker export demand.

Iceberg X Sdn Bhd proprietary trader David Ng said domestic inventories remained elevated due to stronger production and slower stock drawdowns, adding pressure to prices.

“Export demand also remained subdued, particularly from major importing markets such as India and China, which limited buying support,” he told Bernama.

Ng said cautious sentiment in competing vegetable oils also weighed on CPO prices, as weakness in related edible oil markets dampened overall market sentiment.

“Softer price movements in rival oils such as soybean oil and sunflower oil reduced palm oil’s relative attractiveness, prompting traders to remain cautious and limiting buying interest in the CPO futures,” he said.

Ng expects prices to remain supported at around RM4,550 per tonne, and pegs resistance at RM4,700 per tonne.

At the close, the October 2026 contract fell RM9 to RM4,433 per tonne, while the November 2026 contract declined RM9 to RM4,523 per tonne, and the December 2026 contract eased RM12 to RM4,624 per tonne.

The January 2027 contract fell RM15 to RM4,731 per tonne, February 2027 declined RM13 to RM4,830 per tonne, and March 2027 decreased RM7 to RM4,926 per tonne.

Trading volume rose to 131,293 lots from 114,553 on Tuesday, while open interest expanded to 464,043 contracts from 339,820 previously.

The physical CPO price for October South was at RM4,500 per tonne.

-- BERNAMA