Kuala lumpur: Crude palm oil (CPO) futures on Bursa Malaysia Derivatives ended lower on Thursday, influenced by declining soybean oil futures, said a dealer. According to BERNAMA News Agency, the market saw limited gains due to the lack of fresh destination buying and Indonesia's decision to maintain the B50 biodiesel mandate next year instead of advancing to B60.

Anilkumar Bagani, the head of commodity research at Sunvin Group in Mumbai, highlighted that expectations of a significant rise in Malaysian palm oil stocks at the end of August further pressured market sentiment. "We estimate Malaysian palm oil stocks at the end of August to surge by four per cent from July to 2.735 million tonnes, with production expected to decline by two per cent and exports by more than five per cent," Bagani told Bernama.

Bagani added that the market is keenly awaiting full August palm oil production estimates from the Malaysian Palm Oil Association and UOB Kay Hian, along with various agencies' forecasts for the Malaysian Palm Oil Board's August supply, demand, and stocks data.

At the close of trading, the September 2026 contract fell RM13 to RM4,635 per tonne, October 2026 weakened RM63 to RM4,768 per tonne, and November 2026 slipped RM54 to RM4,904 per tonne. The December 2026 contract dropped RM47 to RM5,018 per tonne, January 2027 decreased RM41 to RM5,107 per tonne, and February 2027 dropped RM40 to RM5,169.

The trading volume increased to 137,648 lots from 94,460 lots on Wednesday, while open interest decreased to 338,419 contracts from 339,030 contracts the previous day. The physical CPO price for September South remained steady at RM4,670 per tonne.