Kuala lumpur: Crude palm oil (CPO) futures on Bursa Malaysia Derivatives closed lower, taking a breather on Thursday after posting three consecutive days of strong gains.

According to BERNAMA News Agency, Fastmarkets Palm Oil Analytics senior analyst Dr. Sathia Varqa noted that all contract months fell into the red as traders engaged in partial profit-booking and faced pressure due to a rising production outlook.

Mumbai-based Sunvin Group commodity research head Anilkumar Bagani echoed Sathia's observations, stating that the CPO futures ended lower due to profit-taking activities. He highlighted that high production levels and low export performance of Malaysian palm oil during the April 1-20 period have led to trader caution.

Bagani further explained that the Malaysian Palm Oil Association estimated an increase of 17.52 percent in Malaysian palm oil production during the April 1-20 period compared with the March 1-20 period this year. This contrasts with data from the Southern Peninsula Palm Oil Millers Association, which indicated a 31 percent rise.

At the market close, the May 2026 contract fell RM44 to RM4,505 per tonne, while the June 2026 contract decreased RM47 to RM4,552 per tonne. The July 2026 contract dropped RM49 to RM4,579 per tonne. Additionally, the August 2026 contract edged down RM47 to RM4,593 per tonne, September 2026 was RM41 lower at RM4,598 per tonne, and October 2026 slid RM38 to RM4,590 per tonne.

Trading volume decreased to 76,015 lots from 89,195 lots on Wednesday, although open interest increased to 255,331 contracts from 250,518. The physical CPO price for May South decreased by RM20 to RM4,570 per tonne.