Kuala lumpur: Crude palm oil (CPO) futures on Bursa Malaysia Derivatives continued their downward trend on Wednesday, driven by anticipated increases in palm oil production during the latter half of the year.

According to BERNAMA News Agency, Fastmarkets Palm Oil Analytics senior analyst Dr. Sathia Varqa indicated that this outlook is reinforced by a significant 18 percent month-on-month rise in palm oil production in April. He noted that export prospects seem to be under pressure as the price gap between palm oil and competing soybean oil remains narrow, posing a risk of reduced demand amidst increasing supply.

Dr. Sathia also pointed out that market sentiment is being influenced by ongoing volatility in the crude oil markets. At the time of reporting, Brent crude had decreased by 0.24 percent, priced at US$107.50 per barrel.

By the close of trading, the May 2026 contract had fallen RM61 to RM4,390 per tonne. Similarly, the June 2026 contract slipped RM41 to RM4,409, while the July 2026 contract dropped RM43 to RM4,438 per tonne. The August 2026 contract saw a decline of RM47 to RM4,457 per tonne, with the September 2026 contract decreasing by RM43 to RM4,472, and the October 2026 contract shedding RM36 to RM4,489 per tonne.

Trading volume decreased to 113,037 lots from Tuesday's 128,099 lots, although open interest rose to 283,827 contracts from the previous 280,300 contracts. Meanwhile, the physical CPO price for May South declined by RM60 to RM4,450 per tonne.