CPO Futures Close Higher On Forest Fire, Weaker Output Concerns

By Nur Athirah Mohd Shaharuddin

KUALA LUMPUR, July 30 (Bernama) -- The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives ended higher today due to forest fires in North Sumatra, a dealer said.

Palm oil trader David Ng said the situation may hamper production in the medium term, likely by the end of this year or early next year.

“We locate support at RM4,200 and resistance at RM4,350 per tonne,” he told Bernama.

Echoing the sentiment, Mumbai-based Sunvin Group commodity research head Anilkumar Bagani said Indonesia’s declaration of a state of emergency in North Sumatra has introduced fresh supply concerns, contributing to market recovery from Tuesday onward.

Looking ahead, he said the potential upward revision of Indonesian palm oil export taxes and levies hinges on prices remaining above RM4,200 per tonne over the next fortnight.

“Such adjustments would indirectly support Malaysian palm oil by improving its relative pricing and export attractiveness,” he said.

At the close, the spot-month August contract gained RM21 to RM4,209 per tonne, September 2025 added RM23 to RM4,254 per tonne and October 2025 edged up RM24 to RM4,278 per tonne.

The November 2025 contract increased RM24 to RM4,293 per tonne, December 2025 climbed RM23 to RM4,302 per tonne and January 2026 was up RM23 to RM4,307 per tonne.

Trading volume fell to 59,067 lots from 61,890 lots on Tuesday, while open interest increased to 224,701 contracts from 224,301 contracts previously.

The physical CPO price for August South rose RM20 to RM4,230 per tonne.

-- BERNAMA