CPO Futures Ends Higher

By Nurunnasihah Ahmad Rashid

KUALA LUMPUR, June 26 (Bernama) -- The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives ended the short week higher following lower-than-expected palm oil production pace and robust June export performance, said a commodity analyst.

Mumbai-based Sunvin Group commodity research head Anilkumar Bagani said the reduction in the Malaysian palm oil export tax and the signing of the Malaysia-European Free Trade Association Economic Partnership Agreement also supported the better performance today.

“However, renewed weakness in Chicago Board of Trade soybean oil futures, lack of destination buying apart from India, stronger ringgit and the likelihood of unchanged Indonesian palm oil export taxes and levies for July capped the gains in ringgit-denominated Malaysian palm oil futures,” he told Bernama.

He said the Malaysian Palm Oil Association estimated Malaysian palm oil production during the June 1-20 period, down by 4.56 per cent, in line with the UOB Kay Hian estimate of a -1 per cent to -5 per cent reduction, but production is lower than previously thought of an unchanged to two per cent decline. 

At the close, the spot-month July and August 2025 contracts increased by RM47 each to RM3,986 per tonne and RM4,005 per tonne, respectively, while September 2025 improved by RM46 to RM4,011 per tonne.

October 2025 went up RM42 to RM4,011 per tonne, November 2025 rose by RM39 to RM4,017 per tonne, and December 2025 gained RM37 to RM4,031 per tonne.

Trading volume decreased to 63,167 lots from 64,359 on Wednesday, while open interest fell to 224,560 contracts from 231,315 previously.  

The physical CPO price for July South increased by RM20 to RM4,020 per tonne.

Bursa Malaysia and its subsidiaries will be closed tomorrow, June 27, in conjunction with the Awal Muharram public holiday and will resume operations on Monday, June 30, 2025.

-- BERNAMA