CPO Futures Fall Amid Higher Production Expectations

Crude palm oil (CPO) futures on Bursa Malaysia Derivatives continued to decline, closing lower on Friday amidst expectations of higher production.

According to Anilkumar Bagani, commodity research head at Sunvin Group in Mumbai, recent rainfall in Kalimantan has helped reduce some hotspots, potentially supporting palm oil production.

Bagani noted that prices were also pressured by weaker energy prices and a sell-off in vegetable oil and soybean oil futures.

The weaker Malaysian palm oil exports and higher production in September so far, as well as Indonesia's decision to keep the B50 biodiesel mandate in 2027, further dampened CPO futures prices.