Kuala lumpur: Crude palm oil (CPO) futures on Bursa Malaysia Derivatives rebounded to close higher on Wednesday, tracking gains in crude oil prices amid escalating tensions in West Asia. Iceberg X Sdn Bhd proprietary trader David Ng highlighted that recent robust export performance lifted market sentiment, which is expected to remain a positive factor in the near term. "We see prices supported above RM4,600 per tonne and resistance at RM4,750 per tonne," he stated.

According to BERNAMA News Agency, optimism over Indonesia's final allocation and appointment of suppliers for its B50 biodiesel programme also supported CPO futures on Bursa Malaysia Derivatives. Fastmarkets Palm Oil Analytics senior analyst Sathia Varqa remarked that this development reaffirms expectations of higher domestic CPO consumption in Indonesia, allowing Malaysia to recapture part of the export market share.

Earlier today, it was reported that Indonesia had raised its palm oil-based biodiesel allocation for 2026 to 16.75 million kilolitres from the initial 15.65 million kilolitres. This move has contributed to the positive outlook for CPO futures.

At the close, the August 2026 contract rose RM17 to RM4,557 per tonne, September 2026 gained RM23 to RM4,628 per tonne, and October 2026 increased RM22 to RM4,664 per tonne. The November 2026 contract advanced RM20 to RM4,695 per tonne, December 2026 added RM19 to RM4,724 per tonne, and January 2027 climbed RM19 to RM4,753 per tonne.

Trading volume decreased to 77,694 lots from 91,139 lots on Tuesday, while open interest slipped to 302,561 contracts from 305,445 contracts previously. The physical CPO price for August South increased RM30 to RM4,560 per tonne.