CPO Futures Rebound At The Close On Stronger Demand From India
By Durratul Ain Ahmad Fuad
KUALA LUMPUR, June 3 (Bernama) -- The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives ended higher today, rebounding from last Friday’s losses, supported by stronger demand from India, according to palm oil trader David Ng.
He noted that India’s plan to reduce import duties on palm oil, aimed at lowering import costs amid rising demand for vegetable oils, is expected to boost overall demand for Malaysian palm oil.
“Higher crude oil prices are also seen as boosting sentiment in the market. We see prices supported at RM3,830 per tonne and resistance at RM4,000 per tonne,” he told Bernama.
Last Friday, India reduced the base import duties on CPO from 20 per cent to 10 per cent.
Meanwhile, Mumbai-based Sunvin Group commodity research head Anilkumar Bagani said Malaysian palm oil exports for May were seen to be higher with Intertek Testing Services (ITS) estimating them at 1.32 million tonnes, up by 17.86 per cent, and at 1.12 million tonnes, up by 13.21 per cent by AmSpec, from their respective export estimates for April.
“The market is now awaiting Malaysian palm oil production estimates for the full month of May from the Malaysian Palm Oil Association, UOB Kay Hian and from Southern Peninsular Palm Oil Millers' Association.
“It is the time for the Malaysian Palm Oil Board supply and demand previews for May, and the focus would be on the production, export and end stocks estimates,” he added.
Fastmarkets Palm Oil Analytics senior analyst Dr Sathia Varqa said a cut in Indian import duty and demand optimism spurred CPO futures buying on Tuesday, lifting the active month contract by RM56, recovering all of the losses from Friday's close.
“The palm oil market is facing strong resistance in testing the RM4,000 a tonne level, mainly on the seasonal production rise, boosting supply,” he said.
At the close, the spot month June 2025 contract added RM50 to RM3,938 per tonne, July 2025 improved by RM56 to RM3,947 per tonne, August 2025 went up RM56 to RM3,934 per tonne, September 2025 was RM52 firmer at RM3,922 per tonne, October 2025 rose RM45 to RM3,915 per tonne, and November 2025 put on RM41 to RM3,915 per tonne.
Trading volume jumped to 103,618 lots from 59,698 lots last Friday, while open interest advanced to 336,143 contracts from 241,994 contracts previously.
The physical CPO price for June South increased by RM50 to RM3,980 per tonne.
-- BERNAMA