Kuala Lumpur:Crude palm oil (CPO) futures on Bursa Malaysia Derivatives saw an increase on Thursday, driven by expectations that Malaysia might propose a temporary waiver of export duties in its Budget 2027.

According to BERNAMA News Agency, Anilkumar Bagani, head of commodity research at Mumbai-based Sunvin Group, noted that discussions about a potential CPO export duty waiver have been ongoing for several months, leading to a significant rise in CPO futures. The Malaysian palm oil export duty on CPO is approximately US$109 per tonne; a waiver would make Malaysian CPO more competitively priced than Indonesian offerings.

Bagani highlighted that India's import of around 450,000 tonnes of palm oil was influenced by reduced import duties, alongside anticipated increased purchases due to a shortage of sunflower oil from the Black Sea region. These elements have bolstered the positive sentiment in the palm oil market.

David Ng, a proprietary trader at Iceberg X, stated that CPO futures rebounded due to firmer crude oil prices, gains in Dalian vegetable oils, and expectations of stronger Indian demand. Brent crude was up 4.25 percent to US$104.50 per barrel, which supports palm oil prices due to its use as a biofuel feedstock. Ng indicated that support is seen at RM4,500 and resistance at RM4,700 per tonne.

At the market close, the October and November 2026 contracts rose by RM138 to RM4,448 and RM4,551 per tonne, respectively. The December 2026 contract increased by RM137 to RM4,661 per tonne. Additionally, the January 2027 contract went up by RM131 to RM4,767 per tonne, February 2027 added RM115 to RM4,854 per tonne, and March 2027 gained RM91 to RM4,925 per tonne.

The trading volume strengthened to 160,977 lots from 70,612 on Wednesday, with open interest improving to 333,864 contracts from 328,944 previously. The physical CPO price for October South increased by RM110 to RM4,460 per tonne.