Kuala lumpur: Crude palm oil (CPO) futures on Bursa Malaysia Derivatives closed higher on expectations of weaker production in the coming weeks, said Iceberg X Sdn Bhd proprietary trader David Ng. "We see prices supported above RM4,500 and resistance at RM4,680," he told Bernama.
According to BERNAMA News Agency, the Malaysian Palm Oil Council (MPOC) indicated that CPO prices are projected to remain around RM4,400 per tonne in June 2026, driven by global biofuel policies. Recent changes in United States biofuel policies have reportedly enhanced palm oil's price competitiveness across major markets. The council noted that palm oil is the most competitively priced vegetable oil in India, and palm olein prices in Malaysia are trading at a slight discount to Argentine soybean oil, a pricing trend expected to maintain demand.
Meanwhile, Fastmarkets Palm Oil Analytics managing editor and senior analyst Dr. Sathia Varqa noted that Malaysian CPO prices were boosted by speculation regarding potential Indonesian export controls, despite Indonesian markets weakening due to concerns over tighter commodity oversight. It was reported that traders were reacting to potential centralisation of exports for key commodities, including coal, crude palm oil, and minerals, through a proposed Indonesian agency aimed at managing capital flows and stabilising the rupiah. As the world's largest palm oil producer, any changes in Indonesia's export flows could impact prices, currency stability, and foreign exchange reserves globally.
At the market close, June 2026 and July 2026 contracts rose RM49 each to RM4,540 per tonne and RM4,571 per tonne, respectively. The August 2026 contract increased by RM51 to RM4,585 per tonne. Additionally, the September 2026 and October 2026 contracts gained RM47 each to RM4,589 per tonne and RM4,596 per tonne, respectively, while the November 2026 contract added RM48 to RM4,609 per tonne.
Trading volume saw an increase to 121,452 lots from 87,585 lots on Monday, while open interest rose to 284,125 contracts from 283,019 contracts previously. The physical CPO price for May South was RM50 higher at RM4,580 per tonne.