Bursa Malaysia CPO futures extended losses on Tuesday (Nov. 3), with benchmark January 2027 contract falling RM98 to RM4,551 per tonne as expectations of record-high Malaysian palm oil inventories outweighed stronger export demand.
PALMOILMAGAZINE, KUALA LUMPUR — Crude palm oil (CPO) futures on Bursa Malaysia Derivatives ended lower on Tuesday (Nov. 3, 2026), pressured by expectations that Malaysian palm oil inventories could climb to a record 3.81 million tonnes in October, reinforcing concerns over persistent oversupply despite a sharp recovery in export demand.
According to Bernama, the November 2026 CPO futures contract declined RM83 to RM4,350 per tonne at the close. The December 2026 contract fell RM97 to RM4,457 per tonne, while January 2027 dropped RM98 to RM4,551 per tonne.
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Further along the curve, the February 2027 contract decreased RM96 to RM4,637 per tonne, the March 2027 contract lost RM92 to RM4,710 per tonne, and the April 2027 contract weakened RM85 to RM4,760 per tonne.
Trading activity strengthened, with volume increasing to 88,707 lots from 57,464 lots in the previous trading session. Open interest also rose to 337,745 contracts from 334,103 contracts previously.
In the physical market, the November South CPO price declined RM50 to RM4,370 per tonne.
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Record Inventory Expectations Weigh on Market Sentiment
Anilkumar Bagani, head of commodity research at Mumbai-based Sunvin Group, said CPO futures extended their bearish momentum from Monday as market sentiment remained under pressure from expectations of higher Malaysian palm oil inventories.
The absence of a waiver on Malaysia’s palm oil export tax, combined with expectations of stronger production, added to concerns over the country’s supply outlook.
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Bagani also pointed to overnight losses in Chicago Board of Trade (CBOT) soybean oil futures and energy prices as additional factors weighing on palm oil futures.
Sunvin Group estimated Malaysian palm oil inventories at the end of October 2026 could reach 3.81 million tonnes, representing an increase of 8.47% from 3.51 million tonnes in September.
The projected inventory increase comes despite stronger export performance. Malaysian palm oil production was estimated to have risen 3.8% during October, while exports increased 41%. Imports and domestic consumption were also reported to be higher.
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October Palm Oil Exports Surge
Export estimates from cargo surveyors indicated a significant improvement in Malaysian palm oil shipments during October.
Intertek Testing Services estimated Malaysia’s palm oil exports at 1.65 million tonnes, up 45.41% from 1.13 million tonnes in September 2026.
Meanwhile, Amspec Agri Malaysia also placed October exports at approximately 1.65 million tonnes, representing a 73.46% increase from its September estimate.
Despite the substantial recovery in export demand, the market remained concerned that stronger production could continue to outpace consumption and shipments, contributing to further inventory accumulation. (P3)
