KUALA LUMPUR: The crude palm oil (CPO) futures on Bursa Malaysia Derivatives continued their downward trend, closing lower on Thursday due to market uncertainty following the delay in Indonesia’s B40 biodiesel program, a dealer reported.

According to BERNAMA News Agency, Indonesia’s biofuel program, which mandates a higher blend of palm oil in biodiesel, was set to begin on January 1. The delay in its implementation has created concerns about the potential impact on CPO demand. Palm oil dealer David Ng indicated that the slower progress of the program could suppress demand for CPO, thus influencing the prices negatively. Ng noted that the sluggish pace of exports, attributed to seasonal factors, is also affecting market sentiment. He identified support levels at RM4,300 and resistance at RM4,480.

At the market close, the January 2025 contract saw a decrease of RM171 to RM4,690 per tonne. The February 2025 contract dropped RM133 to RM4,484, and March 2025 fell RM115 to RM4,333. Meanwhile, the April 2025 note declined by RM93 to RM4,212 per tonne, May 2025 slipped RM73 to RM4,132, and June 2025 shed RM55 to RM4,085 per tonne.

The trading volume increased to 74,951 lots from 72,477 lots on the previous Tuesday, while open interest slightly decreased to 234,076 contracts from 239,495 contracts the day before. Additionally, the physical CPO price for January South decreased RM150 to RM4,800 per tonne.