CPO Futures Drop on Weak Soybean Oil and Exports
Malaysian crude palm oil futures closed lower Thursday as soybean oil prices softened and export momentum stalled.
The December 2026 contract fell by RM62 to close at RM4,936 per tonne. This marked the largest single-contract drop among active futures on Bursa Malaysia Derivatives. Traders cited weaker global vegetable oil benchmarks as the primary driver. Sluggish export data from Malaysia also pressured sentiment.
The October 2026 contract ended the session at RM4,712 per tonne, down RM29. The November 2026 contract closed at RM4,832 per tonne, a decline of RM52. The March 2027 contract eased by RM32 to finish at RM5,169 per tonne. All listed contracts traded below their previous closing levels.
Trading Volume Declines Amidst Market Pause
Total trading volume dropped to 137,371 lots from 153,885 the previous session. Open interest decreased to 348,305 contracts from 351,861. The market had been closed on Wednesday for Malaysia Day celebrations. Trading resumed on Thursday, but participation remained cautious.
David Ng, a proprietary trader at Iceberg X Sdn Bhd, identified technical levels for the near term. He noted support at RM4,900 per tonne and resistance at RM5,080 per tonne. The physical CPO price for September South held steady at RM4,650 per tonne. This physical benchmark remained unchanged despite the futures decline.
Soybean Oil Weakness Drives Sector Down
The decline in CPO tracks the broader weakness in competing oils. GN auto markets/commodities: soybean futures reported lower prices during the same period. This cross-commodity correlation limits upside for palm oil. Exporters face slower demand, compounding the price pressure. Market participants are watching for signs of demand recovery in key import markets.
Technical Levels Define Near-Term Range
Traders are focused on the RM4,900 support line. A break below this level could trigger further selling. The RM5,080 resistance level caps immediate gains. Volume trends suggest a lack of aggressive positioning. The market remains in a consolidation phase until new catalysts emerge.
