Kuala Lumpur:Crude palm oil (CPO) futures on Bursa Malaysia Derivatives ended lower on Monday, impacted by weaker crude oil prices and concerns over high Malaysian inventories.

According to BERNAMA News Agency, David Ng, a proprietary trader at Iceberg X Sdn Bhd, noted that the losses were somewhat mitigated by stronger Dalian Commodity Exchange performance and an increase in Malaysian palm oil exports in October. Last month's figures from the Malaysian Palm Oil Board (MPOB) indicated that Malaysia's palm oil stocks reached a record high of 3.5 million tonnes, with continued high production expected to negatively affect prices.

Immediate support for CPO prices is seen around RM4,550 per tonne, with resistance at RM4,750 per tonne. Market direction is expected to remain sensitive to crude oil prices and inventory developments. Anilkumar Bagani from Sunvin Group highlighted that Malaysia's palm oil exports in October, estimated at 1.65 million tonnes by Intertek Testing Services, rose 45.41 percent compared to September. Market participants are awaiting further export data and production estimates from various agencies and associations.

The Malaysian government is reportedly considering waiving CPO export taxes to alleviate the burden of elevated inventories, pending feedback from industry stakeholders. Until this decision is finalized, market conditions are expected to remain uncertain.

At the close of trading, the November 2026 contract decreased by RM16 to RM4,433 per tonne, while the December 2026 contract fell by RM34 to RM4,554. Contracts for January through April 2027 also saw declines. Trading volume dropped to 57,464 lots from the previous 97,010, with open interest falling to 334,103 contracts.

The physical CPO price for November South decreased by RM40 to RM4,420 per tonne.