Kuala lumpur: The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives concluded its recent upward trend and closed lower on Tuesday. The decline is attributed to the sharp increase in prices, which is expected to dampen further demand, according to palm oil trader David Ng.

According to BERNAMA News Agency, Ng highlighted that the widening price gap between palm oil and soybean oil is making palm oil less competitive. The lower soybean oil prices are affecting market sentiment negatively. Ng noted that there is support for prices at RM4,500, with resistance observed at RM4,680.

At the market's close, the spot-month contract for September 2025 decreased by RM27 to RM4,449 per tonne. The October 2025 contract dropped by RM31 to RM4,429, and the November 2025 contract fell by RM38 to RM4,521. The December 2025 contract saw a reduction of RM42 to RM4,530 per tonne, while the January 2026 and February 2026 contracts decreased by RM43 and RM44, closing at RM4,527 and RM4,503, respectively.

Trading volume surged to 95,632 lots, up from 70,059 lots recorded on Monday, with open interest increasing to 253,319 contracts from the previous 249,400. Meanwhile, the physical CPO price for August South remained steady at RM4,470 per tonne.