Kuala Lumpur: The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives rebounded to close higher, driven by gains in soybean oil and market optimism over India’s renewed palm oil purchases to replenish stocks.

According to BERNAMA News Agency, prices are supported at RM4,250, with a resistance level at RM4,450. Anilkumar Bagani, commodity research head at Mumbai-based Sunvin Group, noted that India resumed palm oil purchases after the country’s imports hit multi-year lows in January. The overall positive trade in Chinese vegetable oil futures during Asian hours also contributed to the strength in CPO futures.

Anilkumar added that the decline in palm oil stocks is due to a sharp drop in exports and a double-digit decline in production. Weather concerns in Malaysia are affecting the market as heavy rains disrupt oil palm fruit collection. In some areas, flood-like conditions are hindering the transportation of fresh fruit bunches and palm oil. However, lower export taxes in February have resulted in cheaper Indonesian palm oil offerings, posing a major hurdle for Malaysian palm oil demand.

At the close, the February 2025 contract rose RM22 to RM4,613 per tonne, while March 2025 increased RM23 to RM4,439 and April 2025 improved RM26 to RM4,334. The May 2025 note gained by RM23 to RM4,250 per tonne, June 2025 appreciated by RM12 to RM4,180, and July 2025 added RM6 to RM4,129. Trading volume jumped to 74,758 lots from 58,027 lots on Tuesday, while open interest widened to 221,110 contracts from 220,432 previously. The physical CPO price for February South inched up by RM10 to RM4,660 per tonne.