Kuala lumpur: Crude palm oil (CPO) futures on Bursa Malaysia Derivatives concluded higher, bolstered by the increase in Chicago Board of Trade (CBOT) soybean oil prices.
According to BERNAMA News Agency, David Ng, a proprietary trader at Iceberg X Sdn Bhd, highlighted that ongoing concerns regarding the potential impact of the El Ni±o weather pattern on production in the short term also supported the rise in CPO prices. Ng noted that prices were observed to be supported above RM4,850 per tonne with resistance at RM5,050 per tonne.
Anilkumar Bagani, head of commodity research at Mumbai-based Sunvin Group, indicated that CPO futures saw gains as a result of a bullish rally in CBOT soybean oil, Dalian Commodity Exchange refined, bleached, and deodorized palm olein, and soybean oil futures during Asian trading hours. The increase in energy prices also contributed to this upward trend. Bagani pointed out that the market benefited from the expanded palm oil discount against gas oil and seemed to overlook the decline in Malaysian palm oil exports in August, with minimal reductions in production.
Intertek Testing Services (ITS) estimated Malaysian palm oil exports for August 2026 at 1.36 million tonnes, reflecting a 14.85 percent decrease compared to July estimates. Bagani mentioned that the market was anticipating full-month Malaysian palm oil export estimates from AmSpec and production estimates from the Southern Peninsular Palm Oil Millers' Association, UOB Kay Hian, and the Malaysian Palm Oil Association, ahead of the Malaysian Palm Oil Board's upcoming supply and demand preview.
Meanwhile, oil prices experienced an increase due to renewed fears of supply disruptions from the key crude-producing region of West Asia, amidst escalating tensions between the United States and Iran. At the time of reporting, Brent crude had risen by 2.18 percent to US$92.46 per barrel.
As of the close, the September 2026 CPO contract saw an increase of RM21 to RM4,649 per tonne, with the October 2026 contract strengthening by RM65 to RM4,853 per tonne. The November 2026 contract advanced by RM79 to RM4,973 per tonne. The December 2026 contract climbed by RM84 to RM5,072 per tonne, while both January 2027 and February 2027 contracts gained RM82 each, reaching RM5,203 per tonne and RM5,237 per tonne, respectively. Trading volume decreased to 121,554 lots from the previous 121,872 lots last Friday, while open interest rose to 338,107 contracts from 332,943 contracts. The physical CPO price for September South increased by RM50 to RM4,700 per tonne.