KUALA LUMPUR: Crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives ended higher today, with the futures trying to find support at the RM5,000 a tonne level.

According to BERNAMA News Agency, Fastmarket Palm Oil Analytics senior analyst Sathia Varqa noted that the decrease in CPO output from Malaysia in November was attributed to excessive rains, which disrupted the harvesting and collection of fresh fruit bunches (FFB). This reduction in CPO supply has maintained the buying momentum on CPO futures. Varqa explained that palm supply and exports are expected to be lower in November compared to October, with the end-month stock position depending on imports and domestic consumption.

Meanwhile, Sunvin Group commodity research head Anilkumar Bagani, based in Mumbai, commented that the weaker ringgit has further supported the rise in CPO futures prices. He mentioned that palm oil prices have largely accounted for the positive impact of Indonesian levies and export tax hikes, along with the Indonesi
an government’s decision to implement the B40 biodiesel mandate starting from January 1, 2025. Indonesia has increased its palm oil reference price for December 1-31, 2024, to US$1,071.67 per tonne, up from US$961.97 per tonne for November 1-30, 2024. While the export tax has shifted to two higher brackets, the export levy percentage remains unchanged, though outright levies have risen due to the reference price hike. Bagani mentioned that their own estimate for the reference price was US$1,073.56 per tonne.

At the close, the spot month December 2024 contract increased RM126 to RM5,343 per tonne. January 2025 rose by RM133 to RM5,212, February 2025 added RM120 to RM5,075, March 2025 went up RM104 to RM4,927 per tonne, April 2025 advanced RM81 to RM4,770, and May 2025 improved RM61 to RM4,622. Trading volume improved to 80,392 lots from 65,864 lots yesterday, while open interest jumped to 231,466 contracts from 229,527. The physical CPO price for December South was RM100 higher at RM5,380 per tonne.