Malaysian Palm Oil Futures End Higher on Supply Concerns and Middle East Tensions

Palm Oil Magazine
Crude palm oil futures on Bursa Malaysia closed the week on a stronger note as concerns over global supply and escalating geopolitical tensions in the Middle East boosted market sentiment and energy prices. Photo by: Palm Oil Magazine

PALMOILMAGAZINE, JAKARTA – Crude palm oil (CPO) futures on Bursa Malaysia Derivatives closed higher on Friday, extending gains at the end of the trading week as concerns over global supply availability and rising geopolitical tensions in the Middle East supported market sentiment.

According to Bernama, all benchmark palm oil contracts finished in positive territory. The July 2026 contract posted the strongest gain, rising RM84 to RM4,594 per tonne. The August 2026 contract increased RM78 to RM4,622 per tonne, while the September 2026 contract climbed RM73 to RM4,646 per tonne.

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The upward momentum continued across later delivery months. October 2026 futures gained RM65 to RM4,668 per tonne, November 2026 contracts rose RM61 to RM4,689 per tonne, and December 2026 futures added RM52 to close at RM4,710 per tonne.

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Market participants attributed the broad-based rally to growing concerns about global vegetable oil supplies and stronger energy prices linked to geopolitical developments in the Middle East. The combination of supply uncertainty and higher energy costs has strengthened expectations for palm oil demand in the near term.

Despite the price gains, overall trading activity moderated. Daily volume declined to 76,763 lots from 91,261 lots recorded in the previous session. However, investor interest remained resilient, with open interest edging up to 287,112 contracts from 286,986 contracts previously.

In the physical market, June-delivery CPO in Southern Malaysia also strengthened, rising RM50 to RM4,560 per tonne. The increase suggests that positive sentiment is not limited to the futures market but is also being reflected in physical palm oil trading.

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Meanwhile, Indonesia’s domestic CPO market recorded a mixed performance. The CPO tender conducted by PT Kharisma Pemasaran Bersama Nusantara (KPBN) on Friday ended in a withdrawal (WD), although the highest bid still moved higher.

The highest CPO offer reached IDR 15,358 per kilogram, up IDR 23 per kilogram, or approximately 0.15%, compared with IDR 15,335 per kilogram recorded on Thursday.

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The simultaneous gains in both Malaysian futures and Indonesia’s domestic market indicate that sentiment across the global palm oil sector remains broadly positive. Market participants will continue to monitor developments in the Middle East, crude oil price movements, and global vegetable oil supply conditions, all of which could influence CPO price direction in the coming week. (P3)


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