CPO Futures Close Higher On Strong Crude Oil Prices

By Fatin Umairah Abdul Hamid

KUALA LUMPUR, May 18 (Bernama) -- Crude palm oil (CPO) futures on Bursa Malaysia Derivatives closed higher on Monday, trading on the back of strong support from crude oil price movements.

Fastmarkets Palm Oil Analytics managing editor and senior analyst Dr Sathia Varqa said palm futures tracked the spike in crude oil prices to trade sharply higher.

“CPO futures surged by more than RM100, and the two nearest-month contracts both closed with gains above that level,” he told Bernama.

Interband Group of Companies senior palm oil trader Jim Teh said prices were strong at the start of Monday’s trading session, with the market closing at around US$4,500.

He said the price movement was in line with energy prices driven by speculative activity.

“It is still too early to conclude the relatively high stock level of about 2.3 million tonnes. At this price, it remains one of the most profitable periods for Malaysia’s agriculture sector,” said Teh.

At the close, the new spot month June 2026 rose RM101 to RM4,491 per tonne, the July 2026 contract increased RM102 to RM4,522 per tonne, and the August 2026 contract edged up RM97 to RM4,534 per tonne.

The September 2026 contract gained RM93 to RM4,542 per tonne, the October 2026 contract added RM84 to RM4,549 per tonne, and the November 2026 contract went up RM80 to RM4,561 per tonne.

Trading volume eased to 87,585 lots from 98,554 lots on Friday, while open interest inched down to 283,019 contracts from 285,554 contracts previously.

The physical CPO price for May South was RM90 higher at RM4,530 per tonne.

-- BERNAMA