CPO FUTURES CLOSE LOWER, WEIGHED DOWN BY CONCERNS OVER RISING OUTPUT

By Durratul Ain Ahmad Fuad

KUALA LUMPUR, April 17 (Bernama) -- The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives (BMD) closed lower for the fourth consecutive day today, pressured by concerns over rising output in the coming weeks. 

Palm oil trader David Ng noted that the stronger ringgit against the US dollar also weighed on market sentiment. 

“We see support at RM4,000 per tonne and resistance at RM4,200 per tonne,” he told Bernama.

Meanwhile, Mumbai-based Sunvin Group commodity research head Anilkumar Bagani said that production figures from the Southern Peninsular Palm Oil Millers' Association (SPPOMA) for the first half of April were lower than expected, as markets had anticipated double-digit growth. 

“Malaysian palm oil export estimates for the April 1-15 period were reported by cargo surveyor Societe Generale de Surveillance at 376,584 tonnes, up by 7.05 per cent; Intertek Testing Services at 491,984 tonnes, up by 16.95 per cent; and AmSpec at 450,657 tonnes, an increase of 13.55 per cent from their respective March 1-15 export estimates.

“Meanwhile, SPPOMA’s April 1-15 production estimates showed a 3.97 per cent growth,” he added, noting that the market is now awaiting a revision to Indonesia’s palm oil export tax. 

At the close, the May 2025 contract fell RM23 to RM4,184 per tonne, June 2025 decreased RM14 to RM4,070 per tonne, July 2025 slid RM4 to RM4,011 per tonne, August 2025 dipped RM5 to RM3,981 per tonne, September 2025 lost RM7 to RM3,965, and October 2025 dropped RM13 to RM3,961 per tonne. 

Trading volume declined to 82,063 lots from 94,914 lots yesterday, while open interest eased to 241,147 contracts from 241,905 previously.

The physical CPO price for April South remained unchanged at RM4,300 per tonne.

-- BERNAMA