CPO Futures Down On Profit-taking, B50 Delay & Weak China Vegoil Prices

By Rosemarie Khoo Mohd Sani

KUALA LUMPUR, Aug 14 (Bernama) -- The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives (BMD) closed lower on Thursday, pressured by profit-taking following calls by an Indonesian industry group to delay the B50 biodiesel mandate.

According to reports, the Indonesian Palm Oil Association cited supply constraints, noting that meeting the 50 per cent palm oil blend requirement would need a sharp rise in CPO output. This would divert supplies from the export market and reduce revenue from export taxes which are used to subsidise the biodiesel programme.

The B50 mandate is a national initiative aimed at reducing fuel imports and cutting carbon emissions. It requires a 50 per cent blend of palm oil-based biodiesel with fossil diesel fuel.

Mumbai-based Sunvin Group commodity research head Anilkumar Bagani said the market was also weighed by losses in rapeseed oil futures on the Zhengzhou Commodity Exchange, as well as weaker palm oil and soybean oil futures in China.

“The stronger Malaysian ringgit has also put pressure on ringgit-denominated prices,” he added.

Anilkumar noted that any delay in implementing the B50 mandate would “take out a lot of bullishness from the palm oil market.”

Meanwhile, palm oil trader David Ng said market sentiment was further dampened by concerns over weak demand in the coming weeks, following the recent price rally and seasonally high production levels.

“We see prices supported at RM4,350 per tonne and resistance at RM4,450 per tonne,” he added.

At the close, the spot-month August 2025 and September 2025 contracts fell RM29 each to RM4,338 per tonne and RM4,358 per tonne, respectively, while October 2025 decreased RM32 to RM4,403 per tonne.

The November 2025 contract shed RM34 to RM4,436 per tonne, December 2025 dropped RM39 to RM4,450 per tonne, and January 2026 declined RM35 to RM4,451 per tonne.

Trading volume slid to 88,920 lots from 97,321 lots on Wednesday, while open interest rose to 244,194 contracts from 236,360 contracts yesterday.

The physical CPO price for August South fell RM20 to RM4,370 per tonne.

-- BERNAMA