CPO Futures Plummet on Higher Production and Weaker Exports

Crude palm oil (CPO) futures on Bursa Malaysia Derivatives extended losses on Friday, closing lower due to expectations of higher production and weaker exports. According to Anilkumar Bagani, commodity research head at Sunvin Group in Mumbai, recent rainfall in Kalimantan helped reduce hotspots, supporting palm oil production.

Bagani also noted that prices were pressured by weakness in energy prices and a sell-off in vegetable oil and soybean oil futures. Meanwhile, Iceberg X Sdn Bhd proprietary trader David Ng attributed market sentiment to weaker soy bean oil and crude oil prices, with Brent crude sliding 0.93% to $103.80 per barrel.

The physical CPO price for September South remained unchanged at RM4,650 per tonne, while the October 2026 contract fell RM14 to RM4,698 per tonne, and the November 2026 contract declined RM32 to RM4,800 per tonne. The decision by Indonesia to keep the B50 biodiesel mandate in 2027 also dampened CPO futures prices.