Kuala Lumpur: Crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives closed lower on Wednesday, affected by concerns over weakening demand from India due to cheaper alternatives, a trader said. Palm oil dealer David Ng noted that these concerns have emerged as soybean oil prices in India are relatively cheaper than palm oil.

According to BERNAMA News Agency, this price disparity has led to a shift in demand towards soybean oil, further pressuring CPO prices. David Ng mentioned that the market sees support at RM4,150 a tonne and resistance at RM4,300.

Meanwhile, Fastmarkets Palm Oil Analytics senior analyst Dr. Sathia Varqa commented that CPO futures traded sharply lower, erasing 70 percent of the gains from the last three days. Losses widened in the second session as sentiment turned bearish. This decline was driven by a mixed performance in related oils, a strengthening ringgit, and a poor export demand outlook at the start of the year.

At the close, the new contract month of February 2025 decreased by RM44 to RM4,464 per tonne, while the March 2025 contract fell by RM40 to RM4,319 per tonne. The April 2025 contract dropped by RM52 to RM4,208 per tonne, May 2025 declined by RM54 to RM4,134 per tonne, June 2025 was reduced by RM56 to RM4,096 per tonne, and July 2025 slipped by RM53 to RM4,080 per tonne.

Trading volume reduced to 59,237 lots compared with 74,588 the previous day, while open interest eased to 220,165 contracts from 220,729 previously. The physical CPO price for February South decreased by RM20 to RM4,600 per tonne.