Crude palm oil futures fall for third straight day on Bursa Malaysia Derivatives

BURSA MALAYSIA DERIVATIVES, 24 SEPTEMBER 2026 —

Crude palm oil (CPO) futures on Bursa Malaysia Derivatives closed lower for the third consecutive session on Wednesday, with the October 2026 contract slipping RM38 to RM4,601 per tonne. The November 2026 contract fell RM46 to RM4,685 per tonne and the December 2026 contract dropped RM42 to RM4,768 per tonne.

Longer‑dated contracts also weakened, with the January 2027 contract down RM33 to RM4,851 per tonne, February 2027 sliding RM23 to RM4,929 per tonne and March 2027 contracting RM19 to RM4,997 per tonne.

Trading volume rose to 173,211 lots from 144,008 lots on Tuesday, while open interest slipped to 334,386 contracts from 337,546 previously. The physical CPO price for September South also fell RM60 to RM4,610 per tonne.

The downward trend mirrors weaker soybean oil futures on the Chicago Mercantile Exchange (CME), adding to market pressure. Iceberg X Sdn Bhd proprietary trader David Ng said concerns over sluggish palm oil exports and rising inventories continued to weigh on sentiment. “Hence, we see prices supported above RM4,700 per tonne with resistance at RM4,850 per tonne,” he told Bernama.

Sunvin Group commodity research head Anilkumar Bagani added that the lower CPO futures were also influenced by softer Malaysian palm oil export performance, a higher than expected production outlook, and easing energy prices. He noted that the rainy season in Malaysia and Indonesia is promoting further palm oil production gains, with expectations of Malaysian palm oil stocks beyond three million tonnes at the end of September.

UOB Kay Hian has estimated Malaysian palm oil production during 1‑20 September to be up by 20 per cent to 24 per cent from the 1‑20 August period. The market was not ready for such a rise in production and has been succumbing to the output pressure.

“Malaysian palm oil exports for 1‑20 September are estimated by Intertek Testing Services at 714,012 tonnes, down by 12.83 per cent and by AmSpec at 608,120 tonnes, down by 24.7 per cent from their respective export estimates for 1‑20 August period,” he added.

The physical market reflects the same softness. September South CPO prices slipped RM60 to RM4,610 per tonne, echoing the futures decline. The drop in September export volumes has sharpened the bearish outlook. Intertek Testing Services estimated exports at 714,012 tonnes for the first 20 days of September, a 12.83 per cent decline from the same period in August. AmSpec’s estimate for the same period was 608,120 tonnes, a 24.7 per cent drop from August figures.

Production gains have outpaced market expectations. UOB Kay Hian reported Malaysian output for 1‑20 September surged 20‑24 per cent compared to 1‑20 August, overwhelming demand. Bagani warned that Malaysian stocks could exceed three million tonnes by month‑end, citing robust rainfall in both Malaysia and Indonesia, which has boosted yields. He also noted that easing energy prices have reduced refiners’ incentive to switch to palm oil.

The combination of higher production, lower exports and easing energy costs has created a supply glut that is weighing on prices. Traders are watching September export data closely for signs of stabilization. If the export weakness proves temporary, prices may hold; if the trend continues, further declines could follow.

The market remains in correction mode as supply outpaces demand. The next critical test will be whether the recent export weakness proves temporary or signals a broader downturn.

Related: UOB Kay Hian · Bursa Malaysia · David Ng · Bursa Malaysia Derivatives