Kuala lumpur: The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives concluded lower on Friday, as market participants reacted to concerns surrounding increasing stock levels in Malaysia, alongside a weaker-than-anticipated export performance and reduced prices for crude oil and soybean oil.

According to BERNAMA News Agency, David Ng, a proprietary trader at Iceberg X Sdn Bhd, noted that the Malaysian Palm Oil Board's (MPOB) report indicating nearly a five percent month-on-month rise in Malaysia's palm oil stocks for June has negatively impacted market sentiment, leading to apprehensions about ample supply. Ng emphasized that traders will continue to observe export demand, inventory levels, and price movements of rival edible oils and crude oil to assess further market direction. He mentioned that prices are likely to find support at RM4,500 a tonne, with resistance at RM4,680 a tonne.

MPOB reported that Malaysia's palm oil stockpiles increased by 4.78 percent, or 116,123 tonnes, reaching 2.54 million tonnes in June 2026, up from 2.43 million tonnes the previous month. Concurrently, CPO stocks rose by 3.75 percent, or 48,153 tonnes, totaling 1.33 million tonnes in June 2026, compared to 1.28 million tonnes in May 2026.

In terms of production, MPOB revealed that CPO output surged by 8.08 percent, or 122,450 tonnes, amounting to 1.64 million tonnes from 1.52 million tonnes a month earlier. Additionally, palm kernel output increased by 8.16 percent month-on-month to 381,480 tonnes, up from 352,697 tonnes.

MPOB also highlighted that palm oil exports grew by 6.19 percent in June 2026, reaching 1.20 million tonnes from 1.13 million tonnes the prior month. However, palm kernel oil exports experienced a decline of 2.64 percent to 83,712 tonnes.

At the market close, the spot month July 2026 contract fell by RM27 to RM4,455 a tonne. The August 2026 and October 2026 contracts each dropped by RM80 to RM4,476 and RM4,547, respectively. The September 2026 contract decreased by RM81 to RM4,513, while the November 2026 and December 2026 contracts shed RM77 each, settling at RM4,582 and RM4,612, respectively.

Trading volume improved to 113,131 lots from 84,918 lots on Thursday, with open interest rising to 286,062 contracts from a previous 284,416 contracts. The physical CPO price for July South decreased by RM40 to RM4,490 per tonne.