Kuala lumpur: Crude palm oil (CPO) futures on Bursa Malaysia Derivatives closed lower for the third consecutive trading day, pressured by weaker crude oil prices.

According to BERNAMA News Agency, Mumbai-based Sunvin Group commodity research head Anilkumar Bagani noted that crude oil prices continued their decline as stranded tankers resumed passing through the Strait of Hormuz. This resumption followed an initial accord to end the US-Iran conflict, which eased supply concerns. At the time of writing, Brent crude was down by 1.42 per cent, trading at US$72.69 per barrel.

The market sentiment was also impacted by expectations of stronger Malaysian palm oil production amid concerns over a potential Super El-Nino. Bagani mentioned that Malaysia's palm oil production increased by about five per cent during the June 1-20 period, alleviating fears of a Super El-Nino affecting output. Data from the Southern Peninsular Palm Oil Millers' Association (SPPOMA) indicated that production at mills in Peninsular Malaysia's southern region rose by around 16 per cent during the same period, countering concerns of a Super El-Nino impact.

At the close, the spot month July 2026 contract eased RM62 to RM4,513 per tonne. August 2026 declined RM69 to RM4,535, and September 2026 fell RM76 to RM4,557. The October 2026 contract slipped RM80 to RM4,579 per tonne, November 2026 decreased RM85 to RM4,599, and December 2026 shed RM86 to RM4,623.

Trading volume increased to 120,463 lots from 63,067 lots on Wednesday, while open interest slightly dipped to 285,853 contracts from 286,122 previously. The physical CPO price for July South edged down RM60 to RM4,530 per tonne.