CPO Futures End Three-day Losing Streak Amid Stronger Soybean Oil Prices

By Danni Haizal Danial Donald

KUALA LUMPUR, Nov 25 (Bernama) -- Crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives ended a three-day losing streak to close higher on Monday, due to stronger soybean oil prices on the Chicago Board of Trade (CBOT), said palm oil trader David Ng. 

He noted that the expectation of a weaker output in the coming weeks also influenced market sentiment.

“We see price support at RM4,600 a tonne and resistance at RM4,850 a tonne,” Ng told Bernama.

Mumbai-based Sunvin Group commodity research head Anilkumar Bagani said that the increase in Indonesia’s palm oil export taxes and levies in December 2024 has raised the likelihood of a rebound in Malaysian palm oil futures.

“However, the markets are still sceptical over Indonesia’s B40 biodiesel mandate, whether it starts from Jan 1, 2025, or will be delayed,” he said.

Anilkumar also said Malaysian palm oil export performance for the November 1-20 period, estimated by Intertek Testing Services, was down by 5.32 per cent or 981,687 tonnes.

This was followed by AmSpec Agri Malaysia’s estimation which showed a reduction of 1.38 per cent, at 963,302 tonnes, from their respective export estimates for the October 1-20 period.

At the close, the spot month December 2024 contract increased by RM39 to RM4,829 per tonne, the January 2025 contract rose by RM53 to RM4,767 per tonne, and February 2025 climbed by RM57 to RM4,699 per tonne.

The March 2025 contract advanced by RM60 to RM4,607 per tonne, the April 2025 contract improved by RM56 to RM4,514 per tonne, and the May 2025 contract surged by RM56 to RM4,429 per tonne.

Trading volume contracted to 55,017 lots from 95,229 lots on Friday, while open interest edged lower to 235,537 contracts from 239,910 previously.

The physical CPO price for December South remained unchanged at RM4,950 per tonne.

-- BERNAMA