CPO FUTURES FALL ON CONCERNS OVER HIGHER OUTPUT, STOCKPILES

By Abdul Hamid A Rahman

KUALA LUMPUR, May 2 (Bernama) -- Crude palm oil (CPO) futures on Bursa Malaysia Derivatives ended lower on Friday, reversing earlier gains as concerns over rising output and high domestic stock levels weighed on market sentiment.

Palm oil trader David Ng said the market turned cautious on expectations of a seasonal increase in production, particularly as estates enter peak harvesting period in the second quarter of the year.

“This is the time when fresh fruit bunch (FFB) yields typically improve due to better weather conditions and enhanced harvesting activities, contributing to higher CPO output,” he told Bernama.

He added that domestic stock levels remain elevated as export demand, especially from key importers such as India and China, has been subdued in recent weeks.

“Sluggish overseas buying, combined with rising local production, has led to a build-up in inventories. Without stronger export momentum, stockpiles are likely to remain high and continue to pressure prices,” he said.

Ng said immediate support is seen at RM3,800 a tonne and resistance at RM4,000.

At the close, May 2025 erased RM51 to RM3,920 per tonne, June 2025 fell RM31 to RM3,907 and July 2025 eased RM30 to RM3,881.

August 2025 declined RM22 to RM3,883 per tonne, September 2025 slipped RM14 to RM3,888 and October 2025 edged down RM13 to RM3,891.

Trading volume rose to 68,810 lots from 55,576 on Wednesday, while open interest narrowed to 232,901 contracts from 234,571 previously.

Meanwhile, the physical CPO price for May South fell RM60 to RM4,020 per tonne.

-- BERNAMA