Kuala lumpur: The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives ended lower today, influenced by a stronger ringgit against the United States (US) dollar. Palm oil trader David Ng noted that a stronger ringgit makes Malaysian palm oil more expensive for foreign buyers, which can reduce export demand.

According to BERNAMA News Agency, Ng explained that as importers need to pay more in their local currency to buy the same amount of palm oil, buyers may delay or reduce purchases, leading to lower demand. Ng also mentioned concerns over rising production as a factor that weighed down market sentiment, indicating support at RM3,900 per tonne and resistance at RM4,080.

Sathia Varqa, a senior analyst at Fastmarkets Palm Oil Analytics, similarly pointed out that the stronger ringgit against the US dollar was a key factor pressuring the market. Varqa stated that the ringgit rose to a nine-month high this week, making Malaysian palm oil more expensive for overseas buyers and putting additional pressure on the market.

At the close, the spot-month July contract fell RM16 to RM3,942 per tonne, while the August 2025 contract declined RM16 to RM3,963 per tonne, and the September 2025 contract dropped RM18 to RM3,968 per tonne. The October 2025 contract slipped RM15 to RM3,973 per tonne, November 2025 eased RM18 to RM3,977 per tonne, and December 2025 decreased RM16 to RM3,993 per tonne.

Trading volume showed an increase to 54,076 lots from 30,371 on Monday, with open interest rising to 269,214 contracts from 220,799 previously. The physical CPO price for July South decreased RM20 to RM3,980 per tonne.