CPO Futures Extend Losses On Expectations of Higher Output

By Muhammad Fawwaz Thaqif Nor Afandi

KUALA LUMPUR, May 13 (Bernama) -- Crude palm oil (CPO) futures on Bursa Malaysia Derivatives extended their bearish run on Wednesday, weighed down by expectations of higher palm oil output in the second half of the year.

Fastmarkets Palm Oil Analytics senior analyst Dr Sathia Varqa said the outlook was supported by the sharp 18 per cent month-on-month increase in palm oil production in April.

“Export prospects also appeared challenged, as palm oil’s price discount to competing soybean oil remained narrow, increasing the risk of weaker demand against a backdrop of growing supply,” he told Bernama.

Sathia added that sentiment was also affected by the continued volatility in crude oil markets.

At the time of writing, Brent crude fell 0.24 per cent to US$107.50 per barrel.

At the close, the May 2026 contract slid RM61 to RM4,390 per tonne, June 2026 slipped RM41 to RM4,409, and July 2026 dropped RM43 to RM4,438 per tonne.

The August 2026 contract declined by RM47 to RM4,457 per tonne, September 2026 decreased RM43 to RM4,472, and October 2026 shed RM36 to RM4,489 per tonne.

Trading volume edged down to 113,037 lots from 128,099 lots on Tuesday, while open interest rose to 283,827 contracts from 280,300 contracts previously.

The physical CPO price for May South fell RM60 to RM4,450 per tonne.

-- BERNAMA