CPO Futures End Higher Amid Weather-related Supply Concerns

By Nur Athirah Mohd Shaharuddin

KUALA LUMPUR, June 16 (Bernama) -- Crude palm oil (CPO) futures contracts on Bursa Malaysia Derivatives closed higher today amid concerns over weather-related issues, a trader said.

Iceberg X Sdn Bhd proprietary trader David Ng said adverse weather conditions could affect production and output in the months ahead.

"We see support at RM4,500 per tonne and resistance at RM4,650," he told Bernama.

Meanwhile, Fastmarkets Palm Oil Analytics senior analyst Dr Sathia Varqa said CPO futures recovered nearly all of the losses incurred over the previous two days in pre-holiday trading.

The market was supported by bargain-buying, a weaker ringgit and a modest recovery in crude oil prices, he said.

However, gains were capped by stronger production data released by the South Peninsula Palm Oil Millers' Association (SPPOMA), with palm oil production for June 1-15, 2026, increasing by 13.79 per cent.

These latest figures compare with production growth of 17.42 per cent for June 1-10 and 21.71 per cent for June 1-5.

At the close, the July 2026 contract increased RM89 to RM4,501 per tonne, August 2026 contract gained RM88 to RM4,504 contract and September 2026 contract rose RM89 to RM4,574.

The October 2026 contract was up RM92 to RM4,607, November 2026 contract jumped RM89 to RM4,636, and December 2026 contract edged up by RM86 to RM4,660 per tonne.

Trading volume added to 89,705 lots from 72,726 on Monday, while open interest leaped to 289,934 contracts from 281,385 previously.

Meanwhile, the physical CPO price for June South was up by RM90 at RM4,520 per tonne.

-- BERNAMA