CPO Futures Close Higher On Weaker Production Outlook

By Fatin Umairah Abdul Hamid

KUALA LUMPUR, May 19 (Bernama) -- Crude palm oil (CPO) futures on Bursa Malaysia Derivatives closed higher on expectations of weaker production in the coming weeks, said Iceberg X Sdn Bhd proprietary trader David Ng.

“We see prices supported above RM4,500 and resistance at RM4,680,” he told Bernama.

Supporting the outlook, the Malaysian Palm Oil Council (MPOC) said CPO prices are expected to hold around RM4,400 per tonne in June 2026, underpinned by global biofuel policies.

MPOC said recent developments in United States biofuel policies have improved palm oil’s price competitiveness across major markets.

The council added that palm oil remains the most competitively priced vegetable oil in India, while palm olein prices in Malaysia are also trading at a marginal discount to Argentine soybean oil, a pricing dynamic that is expected to continue supporting demand.

Meanwhile, Fastmarkets Palm Oil Analytics managing editor and senior analyst Dr Sathia Varqa said Malaysian CPO prices were lifted by speculation over potential Indonesian export controls, even as Indonesian markets weakened on concerns of tighter commodity oversight.

It was reported that traders were reacting to reports that Jakarta may centralise exports of key commodities, including coal, crude palm oil and minerals, through a proposed agency aimed at managing capital flows and stabilising the rupiah.

Indonesia’s dominant role as the world’s largest palm oil producer means any changes to export flows could have wider implications for prices, currency stability and foreign exchange reserves.

At the close, June 2026 and July 2026 contracts rose RM49 each to RM4,540 per tonne and RM4,571 per tonne, respectively, and the August 2026 contract edged up RM51 to RM4,585 per tonne.

The September 2026 and October 2026 contracts gained RM47 each to RM4,589 per tonne and RM4,596 per tonne, respectively, while the November 2026 contract added RM48 to RM4,609 per tonne.

Trading volume increased to 121,452 lots from 87,585 lots on Monday, while open interest inched up to 284,125 contracts from 283,019 contracts previously.

The physical CPO price for May South was RM50 higher at RM4,580 per tonne.

-- BERNAMA