Kuala lumpur: Crude palm oil (CPO) futures on Bursa Malaysia Derivatives closed lower on Tuesday amid concern over higher stock levels in the country and the weaker soybean oil prices on the Chicago Board of Trade (CBOT).

According to BERNAMA News Agency, Kuala Lumpur-based proprietary trader David Ng of Iceberg X Sdn Bhd indicated that the higher stock levels in the country are primarily due to weak seasonal demand and low competitive vegetable oil prices. Malaysia's stock levels are currently expected to reach three million tonnes, surpassing the historical average, which reflects a significant stock build-up situation in the country. Ng noted that support is seen above RM3,950 per tonne with resistance at RM4,100 per tonne.

At the market close, the January 2026 and February 2026 contracts decreased by RM22 each to RM3,928 per tonne and RM3,973 per tonne, respectively. The March 2026 contract eased by RM24 to RM3,990 per tonne, while the April 2026 contract slipped by RM28 to RM4,000 per tonne. Moreover, the May 2026 contract fell by RM31 to RM4,001 per tonne, and the June 2026 contract shed RM37 to settle at RM3,991 per tonne.

The trading volume saw a significant increase to 63,848 lots from 40,027 lots on Monday, although open interest slightly decreased to 257,198 contracts from 259,729 contracts previously. Concurrently, the physical CPO price for January South experienced a drop of RM20, closing at RM3,980 per tonne.