CPO FUTURES CLOSE LOWER DESPITE GAINS IN EARLY SESSION

By Muhammad Fawwaz Thaqif Nor Afandi & Durratul Ain Ahmad Fuad

KUALA LUMPUR, Jan 9 (Bernama) -- Crude palm oil (CPO) futures on Bursa Malaysia Derivatives ended lower today despite trading moderately higher in the early session, supported by gains in competing oils, mainly sunflower oil and soybean oil, as well as an upward momentum in energy prices.

Mumbai-based Sunvin Group commodity research head Anilkumar Bagani said market sentiment was further supported by Indonesian government announcements on the possibility of increasing palm oil export levies from 10 per cent to 15 per cent to fund the country’s B50 biodiesel mandate.

"Indonesian Energy Ministry official Eniya Listiani Dewi on Thursday reportedly spoke about tightening funds. If the Indonesian export levy rises, it would be supportive of Malaysian palm oil export potential," he told Bernama.

According to Anilkumar, Indonesia’s palm-based biodiesel consumption rose to 14.2 million kilolitres in 2025, up 7.6 per cent year-on-year.

“Market is now awaiting January 1-10 palm oil export and production data, ahead of the Malaysian Palm Oil Board (MPOB) and World Agricultural Supply and Demand Estimate (WASDE) reports published by the United States Department of Agriculture (USDA) due next week,” he said. 

Additionally, the USDA  Attache has projected that Malaysia's 2025/2026 (October/September) palm oil production will be 19.7 million tonnes, up from the 19.5 million tonnes estimated by the WASDE December report, and up from 19.38 million tonnes in 2024/2025.

Exports are estimated at 16.2 million tonnes, up from 16.1 million tonnes projected by WASDE and up from 15.593 million tonnes in 2024/2025. End stocks are estimated at 2.162 million tonnes, down from WASDE 2.34 million tonnes forecast and down from 2.36 million tonnes in 2024/2025, he said.

On demand, Anilkumar said India continues to cover its palm oil needs but is largely focusing on soft oils. Pakistan has been relatively stable in the buying, while China and the European Union have been absent.

At the close, the January 2026 contract fell RM35 to RM3,950 per tonne, February 2026 eased RM10 to RM4,011, March 2026 slid RM7 to RM4,036, April 2026 weakened RM10 to RM4,049, May 2026 slipped RM6 to RM4,053 per tonne, and June 2026 edged down RM4 to RM4,044 per tonne.

Trading volume declined to 96,579 lots from 110,659 on Thursday, while open interest advanced to 260,191 contracts from 255,449 previously.

The physical CPO price for January South rose RM10 to RM4,010 per tonne.

-- BERNAMA