CPO Futures End Higher On Gains In Related Markets, Weaker Ringgit

By K. Naveen Prabu

KUALA LUMPUR, July 16 (Bernama) -- The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives closed higher today supported by stronger prices in related markets.

Palm oil trader David Ng said the market tracked gains in soybean oil and palm olein prices on China’s Dalian Commodity Exchange (DCE), which lifted sentiment across the broader vegetable oil complex.

“When prices of soybean oil or palm olein rise, buyers may shift to palm oil as a more affordable or available alternative, leading to increased demand and upward pressure on palm oil prices,” he told Bernama. 

Ng added that the weaker ringgit also lifted market sentiment. 

“We see price support at RM4,150 per tonne and resistance at RM4,300,” he said. 

Meanwhile, Fastmarkets Palm Oil Analytics senior analyst Sathia Varqa said palm oil futures were also lifted by bargain buying after recent declines, with the weaker ringgit making Malaysian palm oil more attractive to overseas buyers.

“Palm oil futures also gained support from stronger soybean oil prices on DCE,” he said. 

However, Sathia cautioned that further upside may be limited as production conditions improve.

“Improving production in July may weigh on market sentiment moving forward,” he said. 

At the close, the new spot-month August contract rose by RM52 to RM4,158 per tonne, while September 2025 gained RM52 to RM4,198 per tonne.

October 2025 climbed RM61 to RM4,224 per tonne, November 2025 advanced RM67 to RM4,233 per tonne, and December 2025 added RM65 to RM4,233 per tonne.

January 2026 also increased by RM67 to settle at RM4,232 per tonne.

Trading volume went down to 90,890 lots from 128,330 lots on Tuesday, while open interest increased to 231,958 contracts from 231,153 contracts previously.

The physical CPO price for August South increased by RM50 to RM4,170 per tonne.

-- BERNAMA