Kuala lumpur: Crude palm oil (CPO) futures on Bursa Malaysia Derivatives saw a continued decline on Friday, closing lower due to the expectations of increased production, as explained by an industry analyst.

According to BERNAMA News Agency, Anilkumar Bagani, the commodity research head at Mumbai-based Sunvin Group, highlighted that the recent rainfall in Kalimantan helped reduce some hotspots, potentially supporting palm oil production. Bagani noted that the CPO futures were also influenced by the weak performance in energy prices, as well as a sell-off in vegetable oil and soybean oil futures.

Bagani further mentioned that the weaker Malaysian palm oil exports and higher production in September, along with Indonesia's decision to maintain the B50 biodiesel mandate through 2027, contributed to the pressure on CPO futures prices.

David Ng, a proprietary trader at Iceberg X Sdn Bhd, commented that the market sentiment was negatively impacted by the weaker prices of soybean oil and crude oil. At the time of his statement, Brent crude had decreased by 0.93 percent, settling at US$103.80 per barrel. Ng observed that the recent export weakness also played a role in depressing prices, but he noted that support levels were identified above RM4,900 with resistance at RM5,050.

At the market close, the October 2026 CPO contract fell by RM14, closing at RM4,698 per tonne. The November 2026 contract dropped by RM32 to RM4,800 per tonne, and the December 2026 contract decreased by RM38 to RM4,898 per tonne. Additionally, the January 2027 contract weakened by RM45 to RM4,983 per tonne, February 2027 slid by RM54 to RM5,054 per tonne, and March 2027 contracted by RM56 to RM5,113 per tonne.

The trading volume decreased to 122,261 lots compared to 137,371 on Thursday, and open interest fell to 339,480 contracts from 348,305 previously. The physical CPO price for September South remained steady at RM4,650 per tonne.