CPO Futures Close Marginally Higher On Firmer Crude Oil Prices

By Muhammad Fawwaz Thaqif Nor Afandi

KUALA LUMPUR, April 16 (Bernama) -- Crude palm oil (CPO) futures on Bursa Malaysia Derivatives closed marginally higher amid the rise in crude oil prices that continued to lend support to market sentiment, a trader said. 

Iceberg X Sdn Bhd proprietary trader David Ng said stronger crude oil prices generally make palm oil more attractive in the biofuel segment, especially for biodiesel blending, as higher fossil fuel costs encourage a shift towards vegetable oil-based alternatives, thereby supporting demand for CPO.

"The firmer crude oil prices are underpinning palm oil prices, given its widespread use as a biofuel feedstock," he told Bernama.

At the time of writing, Brent crude rose 1.63 per cent to US$96.48 per barrel.

"We see prices supported above RM4,450 a tonne and resistance at RM4,550 a tonne," he added.

At the close, the May 2026 contract increased RM17 to RM4,443 per tonne, June 2026 gained RM4.0 to RM4,476 per tonne, and the July 2026 contract eased RM2.0 to RM4,495 per tonne.

The August 2026 contract added RM1.0 to RM4,495 per tonne, while September 2026 and October 2026 perked up RM2.0 each to RM4,483 and RM4,464 per tonne, respectively.

Trading volume fell to 78,490 lots from 84,427 lots on Wednesday, while open interest slid to 261,976 contracts from 264,763 contracts yesterday.

The physical CPO price for April South was unchanged at RM4,490 per tonne.

-- BERNAMA