CPO Futures End Higher On Stronger Crude Oil, Weaker Output Prospects

By Muhammad Fawwaz Thaqif Nor Afandi

KUALA LUMPUR, May 26 (Bernama) -- Crude palm oil (CPO) futures on Bursa Malaysia Derivatives ended higher on Tuesday, supported by the sharp gains in crude oil prices and weaker Malaysian palm oil production prospects, a trader said.

Mumbai-based Sunvin Group commodity research head Anilkumar Bagani said crude oil futures traded higher on Tuesday morning following reports of United States military strikes on targets in southern Iran.

“Meanwhile, Malaysian palm oil production for the May 1-20 period estimated by Malaysian Palm Oil Association (MPOA) was down by 5.85 per cent from the same period last month," he told Bernama.

Anilkumar added that the persistent weaker May export, the lower Chicago Board of Trade (CBOT) soybean oil futures and rising palm oil premium over gas oil has seen the palm oil upward momentum restricted.

"Malaysian palm oil export for May 1-25 was estimated by Intertek Testing Services at 1.02 million tonnes, down by 14.51 per cent and by AmSpec at 947,430 tonnes, down by 18.03 per cent, from their respective April 1-25 export estimates," he said.

At the close, the June 2026 contract rose RM19 to RM4,429 per tonne, July 2026 contract added RM20 to RM4,466 per tonne and August 2026 gained RM23 to RM4,496 per tonne.

The September 2026 contract increased RM29 to RM4,522 per tonne, October 2026 contract climbed RM36 to RM4,553 per tonne, and the November 2026 contract was RM37 higher to RM4,581 per tonne.

Trading volume edged up to 63,916 lots from 57,304 lots on Monday, while open interest strengthened to 284,109 contracts from 282,395 contracts previously.

The physical CPO price for June South inched up by RM20 to RM4,470 per tonne.

Bursa Malaysia and its subsidiaries will be closed on May 27 in conjunction with the Aidiladha public holiday.

-- BERNAMA