CPO Futures End Lower On Weaker Palm Olein Prices In China

By K. Naveen Prabu

KUALA LUMPUR, July 4 (Bernama) -- The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives ended lower today, tracking weaker palm olein prices on China’s Dalian Commodity Exchange. 

Palm oil trader David Ng said since China is a key palm oil buyer, lower prices there signal weaker demand or softer sentiment in the Chinese market.

“When palm oil prices fall in China, traders think demand there is weakening, so they sell off or avoid buying in Malaysia, causing prices here to drop,” he told Bernama. 

However, Ng said the downside was limited by expectations of a slower-than-expected production pace and strong export performance ahead of the key crop report due next week.

“We see support at RM4,000 per tonne and resistance at RM4,150,” he said.

Fastmarkets Palm Oil Analytics senior analyst Dr Sathia Varqa noted that futures stayed lower throughout the day, drifting between RM3 to RM30 lower, as market participants trimmed positions ahead of the weekend and the release of industry data next week.

“The Malaysian Palm Oil Board (MPOB) will release its June supply and demand data on July 10, with market attention focused on the extent of the production decline and its impact on end-month stock levels,” he said.

At the close, the spot-month July contract fell by RM37 to RM3,995 per tonne, while August 2025 declined by RM31 to RM4,053 per tonne and September 2025 eased by RM29 to RM4,062 per tonne.

October 2025 slipped by RM28 to RM4,064 per tonne, November 2025 lost RM25 to RM4,065 per tonne, and December 2025 edged down by RM23 to RM4,072 per tonne.

Trading volume decreased to 45,823 lots from 58,749 on Thursday, while open interest went up to 226,243 contracts from 225,914 previously.

The physical CPO price for July South decreased by RM30 to RM4,050 per tonne.

-- BERNAMA