Crude palm oil (CPO) futures on Bursa Malaysia Derivatives closed higher on Monday, driven by rising soybean oil and crude oil prices in the world market. Travel Guide & Travel Stories
The increase occurred following the resurgence of geopolitical tensions in the Middle East, thus increasing positive sentiment in the commodity market.
This situation has made investors more confident about the outlook for palm oil prices in the near term.
According to Iceberg X Sdn Bhd proprietary trader, David Ng, the rise in soybean oil and crude oil prices has supported palm oil price movements as these three commodities are interrelated.
In addition, expectations of better export demand have also helped strengthen the market. He said that CPO prices are now receiving strong support at a level above RM4,500 per metric ton, while the next resistance level is estimated at around RM4,560 per metric ton.
At the same time, investors are now awaiting several important reports that are expected to provide a clearer picture of palm oil supply and demand.
Among them are Malaysia’s export estimates for the period 1 to 15 July to be released by Intertek Testing Services (ITS) and AmSpec Agri Malaysia.
The market is also awaiting production forecast reports from the Southern Peninsula Palm Oil Millers’ Association (SPPOMA), UOB Kay Hian and the Malaysian Palm Oil Association (MPOA).
Sunvin Group’s head of commodity research, Anilkumar Bagani, said discussions on the possibility of a strong El Niño phenomenon returning were gaining traction.
If the weather conditions materialise, it could reduce rainfall and affect palm oil production. Concerns over lower supply could potentially support future CPO price increases.
At the close of trading, the August 2026 CPO contract rose RM39 to RM4,568 per metric tonne, while the September contract rose RM43 to RM4,673 per metric tonne.
The December 2026 contract rose RM42 to RM4,705, while the January 2027 contract rose RM38 to RM4,735 per metric tonne.
Although trading volume and open interest recorded a slight decrease compared to last Friday, the physical price of CPO for August delivery in Southern Malaysia still increased by RM40 to RM4,580 per metric ton, indicating that the market is still supported by positive sentiment.
