CPO Futures End Lower On Rising Production, High Stock Levels
By K Naveen Prabu & Zufazlin Baharuddin
KUALA LUMPUR, June 10 (Bernama) -- The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives closed lower today on concerns over rising production and high stock levels, reflecting the latest golden crop report, said a trader.
According to the Malaysian Palm Oil Board (MPOB) report, Malaysia produced 1.77 million tonnes of crude palm oil (CPO) in May, a 5.1 per cent increase from 1.69 million tonnes in the preceding month.
Meanwhile, CPO stockpile was 4.8 per cent higher at 1.10 million tonnes in May compared with 1.05 million tonnes in the prior month.
Palm oil trader David Ng said the MPOB data reflected a seasonally high production period for May, which continued to weigh on market sentiment.
“We expect prices to be supported at around RM3,800 per tonne and resistance seen at RM3,950 per tonne,” he told Bernama.
At the close, the spot-month June 2025 fell by RM44 to RM3,876 per tonne, July 2025 declined by RM60 to RM3,872 per tonne, and August 2025 dropped by RM61 to RM3,864 per tonne.
September 2025 fell by RM53 to RM3,861 per tonne, October 2025 declined by RM49 to RM3,859 per tonne, and November 2025 decreased by RM43 to RM3,861 per tonne.
Trading volume increased to 68,659 lots from 47,097 lots on Monday, while open interest went up to 247,754 contracts from 225,140 previously.
The physical CPO price for June South decreased by RM 20 to RM3,940 per tonne.
-- BERNAMA