Kuala lumpur: Crude palm oil (CPO) futures on Bursa Malaysia Derivatives ended higher on Wednesday, driven by gains in soybean oil on the Chicago Board of Trade (CBOT). According to BERNAMA News Agency, David Ng, a proprietary trader at Iceberg X Sdn Bhd, noted that firmer crude oil prices, influenced by the ongoing US-Iran conflict, have also bolstered market sentiment.

Ng highlighted that concerns over El Ni±o-related weather conditions potentially reducing palm oil production have increased expectations of a tighter supply. He emphasized that the combination of stronger external markets and production concerns continues to keep the CPO market firm. Ng anticipates that prices will be supported above RM4,850 per tonne, with resistance at RM4,980.

The Malaysian Meteorological Department (MetMalaysia) director-general, Dr Mohd Hisham Mohd Anip, reported that the likelihood of El Nino reaching the 'very strong' or 'Super El Nino' category between October and December has surged to over 90 percent, typically resulting in hotter and drier conditions.

At the market close, the September 2026 contract increased by RM38 to RM4,654 per tonne, while the October 2026 contract rose by RM40 to RM4,794 per tonne. The November 2026 contract added RM33 to RM4,893 per tonne. Additionally, the December 2026 contract advanced RM29 to RM4,972 per tonne, January 2027 climbed RM26 to RM5,033 per tonne, and February 2027 increased RM23 to RM5,071 per tonne.

Trading volume saw a decline to 142,285 lots from 165,588, while open interest expanded to 336,503 contracts from 333,655 previously. The physical CPO price for September South rose by RM30 to RM4,640 per tonne.