CPO Futures End Higher On Stronger Soybean Oil, Crude Oil Prices

By K NAVEEN PRABU

KUALA LUMPUR, June 16 (Bernama) -- The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives ended higher today, tracking stronger soybean oil prices on the Chicago Board of Trade (CBOT) and a surge in crude oil prices.

Palm oil trader David Ng said CPO rallied above RM4,000 per tonne, in line with gains in the soybean oil market following news of a higher biofuel mandate in the United States (US), while rising tensions in the Middle East pushed crude oil prices higher, lifting overall market sentiment.

“We see support at RM4,050 per tonne and resistance at RM4,200,” he told Bernama. 

 Fastmarkets Palm Oil Analytics senior analyst Dr Sathia Varqa noted that CPO futures rose sharply, supported by strength in related vegetable oil futures on the CBOT and Chinese exchanges, with additional support from firmer crude oil prices.

“Soybean oil prices jumped sharply after the US Environmental Protection Agency on Friday proposed the use of 5.61 billion gallons of biodiesel in 2026.

“This was higher than earlier expectations of 4.65 to 5.25 billion gallons, and the proposal was seen as generally bullish for domestic feedstocks,” he added. 

At the close, the spot-month June contract rose by RM171 at RM4,096 per tonne, July 2025 added RM177 to RM4,104 per tonne, and August 2025 increased by RM172 to RM4,094 per tonne.

September 2025 gained RM166 to RM4,080 per tonne, October 2025 climbed RM163 to RM4,073 per tonne, and November 2025 advanced RM161 to RM4,078 per tonne.

Trading volume jumped to 117,399 lots from 113,276 lots on Friday, while open interest decreased to 241,865 contracts from 244,432  contracts previously.

The physical CPO price for June South rose RM140 to RM4,100 per tonne.

-- BERNAMA