Kuala Lumpur: Crude palm oil (CPO) futures on Bursa Malaysia Derivatives closed lower on Monday, driven by an increase in palm oil production, according to Fastmarkets Palm Oil Analytics.

According to BERNAMA News Agency, its senior analyst, Dr. Sathia Varq, noted that the Malaysian Palm Oil Association (MPOA) reported a significant rise in CPO production in Malaysia. The production increased by 24.62 per cent from May 1-31, 2025, compared to April 1-30, 2025. Regionally, Peninsular Malaysia recorded the highest increase at 28.06 per cent, followed by Sabah at 24.07 per cent and Sarawak at 11.37 per cent. Collectively, East Malaysia, which includes Sabah and Sarawak, experienced a production rise of 20.76 per cent. The total CPO production for Malaysia during the May 1-31, 2025 period is estimated at 1.73 million tonnes.

Palm oil trader David Ng commented that the CPO futures closed lower due to growing concerns over rising production and stock levels in Malaysia in the coming weeks. The anticipated increase in output, in line with the seasonal uptrend, has raised expectations of higher inventory, affecting market sentiment. Ng noted that prices are supported at RM3,750 per tonne and resistance is seen at RM3,930 per tonne.

At the closing, May 2025 CPO futures erased RM31 to RM3,889 per tonne, June 2025 fell by RM52 to RM3,855, and July 2025 eased by RM54 to RM3,827. August 2025 declined by RM59 to RM3,824 per tonne, September 2025 slipped RM64 to RM3,824, and October 2025 edged down RM69 to RM3,822. The trading volume narrowed to 53,012 lots from 68,810 last Friday, while open interest rose to 233,677 contracts from 232,901 previously. Meanwhile, the physical CPO price for May South fell by RM100 to RM3,920 per tonne.