CPO Futures End Lower On Stronger Ringgit

By K. Naveen Prabu

KUALA LUMPUR, July 1 (Bernama) -- The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives ended lower today, weighed down by a stronger ringgit against the United States (US) dollar. 

Palm oil trader David Ng said a stronger ringgit makes Malaysian palm oil more expensive for foreign buyers, which can reduce export demand.

“As importers need to pay more in their local currency to buy the same amount of palm oil, buyers may delay or reduce purchases, leading to lower demand,” he told Bernama.

Ng said concerns over rising production was also seen as weighing down market sentiment.

“We see support at RM3,900 per tonne and resistance at RM4,080,” he said. 

Similarly, Fastmarkets Palm Oil Analytics senior analyst Sathia Varqa highlighted that the stronger ringgit against the US dollar was a key factor pressuring the market. 

“The ringgit rose to a nine-month high this week, making Malaysian palm oil more expensive for overseas buyers and putting additional pressure on the market,” he said. 

At the close, the spot-month July contract fell RM16 to RM3,942 per tonne, August 2025 declined RM16 to RM3,963 per tonne, and September 2025 dropped RM18 to RM3,968 per tonne.

October 2025 slipped RM15 to RM3,973 per tonne, November 2025 eased RM18 to RM3,977 per tonne, and December 2025 decreased RM16 to RM3,993 per tonne.

Trading volume increased to 54,076 lots from 30,371 on Monday, while open interest rose to 269,214 contracts from 220,799 previously.

The physical CPO price for July South decreased RM20 to RM3,980 per tonne.

-- BERNAMA