Kuala lumpur: The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives ended higher on Wednesday, supported by firmer crude oil prices amid heightened geopolitical tensions in West Asia.

According to BERNAMA News Agency, Fastmarkets Palm Oil Analytics managing editor and senior analyst Dr. Sathia Varqa said palm oil futures closed higher today, with buying interest driven by a surge in crude oil prices following the United States' strikes on Iran after attacks on ships in the Strait of Hormuz. Dr. Varqa noted that the market has largely set aside expectations of higher palm oil production until the Malaysian Palm Oil Board (MPOB) releases its June data this Friday. Estimates indicate a seven to 12 percent increase in production from May, and this has been mostly priced in.

Besides the rise in crude oil prices, Dr. Varqa mentioned that CPO prices in the near term would also be influenced by the performance of competing vegetable oils, movements in the ringgit against the US dollar, and Malaysia's export demand. Meanwhile, Iceberg X Sdn Bhd proprietary trader David Ng commented that the higher energy prices may boost demand for biodiesel, thereby raising palm oil consumption. He observed that prices are supported above RM4,500 per tonne with resistance at RM4,700 per tonne.

At the close, the spot month July 2026 contract rose RM20 to RM4,503 a tonne, August 2026 strengthened RM56 to RM4,572, and September 2026 widened RM62 to RM4,609. October 2026 added RM64 to RM4,637 per tonne, November 2026 gained RM67 to RM4,668, and December 2026 climbed RM69 to RM4,694. The trading volume surged to 96,582 lots from 77,606 lots on Tuesday, while open interest decreased to 288,327 contracts from 289,701 contracts previously. The physical CPO price for July South increased by RM25 to RM4,530 per tonne.