CPO Rebounds As Export Duty Waiver Expectations Lift Sentiment

By Muhammad Fawwaz Thaqif Nor Afandi

KUALA LUMPUR, Oct 8 (Bernama) -- Crude palm oil (CPO) futures on Bursa Malaysia Derivatives closed higher on Thursday, supported by expectations that Malaysia may propose a temporary waiver of export duties in Budget 2027.

Mumbai-based Sunvin Group commodity research head Anilkumar Bagani said market talks regarding the CPO export duty waiver for several months had led to a sharp jump in CPO futures.

“Malaysian palm oil export duty on CPO is around US$109 per tonne, and if waived off, it will be cheaper compared to the Indonesian offerings,” he told Bernama.

Bagani stated that India’s import of approximately 450,000 tonnes of palm oil resulted from a reduction in import duties. Additionally, there is an expectation of increased palm oil purchases due to a shortage of sunflower oil from the Black Sea region. These factors have contributed to a positive sentiment in the palm oil market.

Iceberg X proprietary trader David Ng said CPO futures rebounded on firmer crude oil prices, gains in Dalian vegetable oils and expectations of stronger Indian demand.

At the time of writing, Brent crude was up 4.25 per cent to US$104.50 per barrel.

“The firmer crude oil prices are underpinning palm oil prices, given its widespread use as a biofuel feedstock.

“We see support at RM4,500 and resistance at RM4,700 per tonne,” he said.

At the close, the October and November 2026 contracts increased RM138 to RM4,448 and RM4,551 per tonne, respectively, while the December 2026 contract edged up RM137 to RM4,661 per tonne.

Meanwhile, the January 2027 contract climbed RM131 to RM4,767 per tonne, February 2027 added RM115 to RM4,854 per tonne, and March 2027 gained RM91 to RM4,925 per tonne.

Trading volume strengthened to 160,977 lots from 70,612 on Wednesday, while open interest improved to 333,864 contracts from 328,944 previously.

The physical CPO price for October South soared RM110 to RM4,460 per tonne.

-- BERNAMA