Kuala Lumpur: Crude palm oil (CPO) futures on Bursa Malaysia Derivatives traded lower today due to a lack of fresh market-moving news.

According to BERNAMA News Agency, the decline is attributed to weak export performance and concerns over sluggish demand.

Fastmarkets Palm Oil Analytics senior analyst Sathia Varqa reported that Malaysian palm oil export performance in the early part of January 2025 was lacklustre. Estimates by cargo surveyor Intertek Testing Services (ITS) for January 1-10 were at 350,788 tonnes, reflecting a 21.35% decrease compared to the December 1-10 period. Similarly, AmSpec reported a drop to 300,218 tonnes, down by 29.12%.

Production data from the Southern Peninsular Palm Oil Millers' Association (SPPOMA) showed a 3.84% decline in production at southern peninsular mills for the same period. Meanwhile, the Malaysian Palm Oil Board (MPOB) forecasts an increase in 2025 palm oil production to 19.5 million tonnes, up from 19.34 million tonnes, with exports expected to rise to 17.3 million tonnes from 16.9 million tonnes. End stocks are projected to decrease to 1.6 million tonnes from 1.71 million tonnes in 2024. MPOB also forecasts palm oil prices in 2025 to trade between RM4,000 and RM4,300 per tonne.

Palm oil trader David Ng noted that the CPO ended lower, influenced by weakness in the Chicago soybean oil market and concerns over sluggish export demand. Ng mentioned that while prices are supported above RM4,350 per tonne, resistance is faced at RM4,520 per tonne.

At the close of trading, several futures contracts showed declines: the January 2025 contract fell RM147 to RM4,668 per tonne, February 2025 eased by RM78 to RM4,578 per tonne, and March 2025 declined by RM63 to RM4,437 per tonne. April 2025 slid RM55 to RM4,337 per tonne, May 2025 trimmed RM62 to RM4,244 per tonne, and June 2025 narrowed by RM68 to RM4,179 per tonne.

The trading volume increased to 80,099 lots from 75,523 lots, while open interest slightly rose to 221,897 contracts. The physical CPO price for January South dropped by RM70 to RM4,800 per tonne.