Kuala Lumpur: The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives witnessed a decline, influenced by the softer soybean oil prices on the Chicago Board of Trade. Palm oil trader David Ng highlighted that the market sentiment is also affected by concerns over rising output, indicating a cautious outlook among traders. Ng noted the support level at RM4,000 per tonne, with resistance at RM4,150.

According to BERNAMA News Agency, the recent Malaysian Palm Oil Board report indicated that Malaysia’s CPO production increased to 1.77 million tonnes in May, marking a 5.1 percent rise from April’s 1.69 million tonnes. Fastmarkets Palm Oil Analytics senior analyst Dr. Sathia Varqa commented on the market’s recent movements, explaining that CPO futures retracted after reaching a two-month high, as traders engaged in mild profit-taking. Despite a limit-up in related vegetable oil futures such as soybean oil on the Chicago Mercantile Exchange the previous day, traders chose to capitalize on their gains due to palm oil’s strong fundamentals.

At the market’s close, the spot month June contract decreased by RM32 to RM4,064 per tonne, with July 2025 and August 2025 contracts also showing declines of RM32 and RM30, closing at RM4,072 and RM4,064 per tonne, respectively. Further contracts for September 2025, October 2025, and November 2025 also saw reductions, with prices settling at RM4,051, RM4,047, and RM4,055 per tonne, respectively.

Additionally, trading volume fell to 110,158 lots from Monday’s 117,399, while open interest decreased to 235,561 contracts from the previous 241,865. The physical CPO price for June South also saw a reduction, decreasing by RM20 to RM4,080 per tonne.