CPO Futures Close Higher On Stronger Export Demand, Energy Prices

By Zufazlin Baharuddin

KUALA LUMPUR, Oct 16 (Bernama) -- Crude palm oil (CPO) futures on Bursa Malaysia Derivatives rebounded to close higher on Friday, supported by stronger October export demand.

Iceberg X Sdn Bhd proprietary trader David Ng said the firmer energy prices also lent support to market sentiment, although record-high domestic inventories continued to limit gains.

“CPO is a key feedstock for biodiesel production. Therefore, higher energy prices could boost biodiesel demand, in turn supporting demand for CPO,” he told Bernama.

According to cargo surveyor Amspec Agri Malaysia, Malaysia’s palm oil exports expanded 37.73 per cent, or 134,760 tonnes, to 491,954 tonnes during Oct 1-10 from 357,194 tonnes in the corresponding period in September.

Meanwhile, independent inspection company Intertek Testing Services reported that exports increased 33.51 per cent, or 131,776 tonnes, to 525,071 tonnes during Oct 1-10, compared with 393,295 tonnes during Sept 1-10.

At the close, the November 2026 contract edged up RM60 to RM4,536 per tonne, the December 2026 contract increased RM57 to RM4,676 per tonne, and January 2027 climbed RM44 to RM4,769 per tonne.

Meanwhile, the February 2027 contract gained RM37 each to RM4,852 per tonne, March 2027 rose RM27 to RM4,926 per tonne, and April 2027 improved RM17 to RM4,984 per tonne.

Trading volume slid to 133,428 lots from 133,700 on Thursday, while open interest widened to 339,364 contracts from 333,964 previously.

The physical CPO price for October South increased RM60 to RM4,500 per tonne.  

-- BERNAMA