Kuala lumpur: The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives closed higher today, continuing last week's upward trend. The increase was attributed to a slower-than-expected rise in stock levels and strong export data, according to palm oil trader David Ng. He noted that CPO prices have surpassed RM4,300 per tonne and are anticipated to stay supported at this level.

According to BERNAMA News Agency, the Malaysian Palm Oil Board's (MPOB) Palm Oil Industry report for July 2025 shows that palm oil exports rose by 3.82 per cent month-on-month, reaching 1.30 million tonnes in July from 1.26 million tonnes in June 2025. Meanwhile, the CPO stockpile saw a reduction of 2.02 per cent to 1.02 million tonnes in July, down from 1.04 million tonnes in June. However, total palm oil inventories increased by 4.02 per cent to 2.11 million tonnes from 2.03 million tonnes previously.

Dr Sathia Varqa, a senior analyst at Fastmarkets Palm Oil Analytics, noted that the July end-month stocks of 2.11 million tonnes fell below market expectations of a 10-11 per cent increase to 2.23-2.25 million tonnes, despite still being at a 19-month high. He mentioned that strong export data from cargo surveyors bolstered market sentiment. Additionally, a report on the Indonesian government's plan to implement a B50 biodiesel mandate in 2026 further supported market sentiment.

For the period from August 1-10, Intertek Testing Services (ITS) reported exports of 482,576 tonnes, up 23.31 per cent from 391,355 tonnes in the same period last month. Similarly, independent inspection company Amspec Agri Malaysia recorded a shipment increase of 23.67 per cent, rising to 453,230 tonnes from 366,482 tonnes previously.

At the market's close, the spot-month August 2025 and September 2025 contracts each surged RM120 to RM4,334 per tonne and RM4,354 per tonne, respectively. The October 2025 contract jumped RM129 to RM4,384, while the November 2025 note advanced RM130 to RM4,404 per tonne. December 2025 gained RM129 to RM4,413, and January 2026 grew RM122 to RM4,411. Trading volume decreased to 83,281 lots from 91,640 last Friday, and open interest dropped to 227,408 contracts from 311,976 previously. The physical CPO price for August South increased RM100 to RM4,350 per tonne.