Kuala lumpur: Crude palm oil (CPO) futures on Bursa Malaysia Derivatives ended higher on Tuesday, tracking gains in oil prices, an analyst said. At the time of writing, West Texas Intermediate (WTI) crude rose 0.17 percent to US$101.60 per barrel.
According to BERNAMA News Agency, Mumbai-based Sunvin Group commodity research head Anilkumar Bagani stated that market sentiment was also buoyed by expectations of tighter palm oil supply next year. He highlighted that additional support is attributed to expectations of tightness in palm oil supply next year due to Indonesia's B50 biodiesel mandate and potential production reduction due to El Nino.
Anilkumar further mentioned that CPO futures also drew support from market talks that India may reduce import duties on edible oils. However, he noted that the upside was capped by weaker Malaysian palm oil exports, rising production, and expectations of higher end-stocks. Malaysian palm oil exports for September 1 to 15 are estimated by Intertek Testing Services at around 560,000 tonnes, down nearly 18 percent from the August 1 to 15 period.
Anilkumar added that the Southern Peninsular Palm Oil Millers' Association (SPPOMA) estimated palm oil production at mills in the southern peninsula rose 26.62 percent during September 1 to 10 from the August 1 to 10 period.
At the close, the September 2026 contract was unchanged at RM4,597 per tonne, while the October 2026 contract strengthened RM24 to RM4,741 per tonne and the November 2026 contract increased RM34 to RM4,884 per tonne. Meanwhile, the December 2026 contract climbed RM40 to RM4,998 per tonne, January 2027 advanced RM34 to RM5,086 per tonne, and February 2027 gained RM20 to RM5,152 per tonne.
Trading volume increased to 153,885 lots from 147,722 on Monday, while open interest edged up to 351,861 contracts from 351,160 previously. The physical CPO price for September South rose RM20 to RM4,650 per tonne.
Bursa Malaysia and its subsidiaries will be closed on Wednesday in conjunction with Malaysia Day, and trading will resume the following day.