CPO Futures Extend Losses On Rising Output, Stocks Concerns

By Nur Athirah Mohd Shaharuddin

KUALA LUMPUR, July 3 (Bernama) -- The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives extended its losses to close lower on Friday, weighed by concerns over rising production and expectations of higher stock levels.

Iceberg X Sdn Bhd proprietary trader David Ng said weaker crude oil prices also dampened market sentiment.

“We see support at RM4,400 per tonne and resistance at RM4,600 per tonne," he told Bernama.

Meanwhile, Fastmarkets Palm Oil Analytics managing editor and senior analyst Dr Sathia Varqa said CPO futures declined for a second consecutive session on continued profit-taking and expectations of bearish Malaysian Palm Oil Board (MPOB) data, which is due for release next week.

He said estimates point to higher production and a third straight month of rising inventories in June, with Fastmarkets forecasting output to increase by between five and eight per cent.

“Market participants are expected to focus on end-June palm oil stocks, which are forecast to climb 7.9 per cent month on month to around 2.62 million tonnes. This would mark a third consecutive monthly increase and the highest inventory level since January 2026," he said.

At the close, the spot month July 2026 contract fell RM6 to RM4,4439 per tonne, August 2026 lost RM20 to RM4,458, and the September 2026 contract shed RM26 to RM4,480 per tonne.

The October 2026, November 2026, and December 2026 contracts slipped RM27 to RM4,505, RM4,533 and RM4,559 per tonne, respectively.

The trading volume jumped to 71,942 lots from 60,311 lots on Thursday, while open interest climbed to 289,382 contracts from 288,316 contracts previously.

The physical CPO price for July South fell by RM10 to RM4,470 per tonne.

-- BERNAMA

CPO Futures Extend Losses On Rising Output, Stocks Concerns

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