CPO Futures End Lower for Second Straight Day On Oversupply Concerns
11/06/2025 (Bernama), Kuala Lumpur - The crude palm oil (CPO)futures contract closed lower for the second consecutive day, weighed down by concerns over a rising supply outlook.
According to the Malaysian Palm Oil Board (MPOB) report yesterday, Malaysia produced 1.77 million tonnes of CPO in May, up5.1 per cent from 1.69 million tonnes in the preceding month.
Fast markets Palm Oil Analytics senior analyst Dr Sathia Varqa said both Malaysia and Indonesia are currently in the high production season, although Malaysia's output is expected to slow in June after increasing for the past three consecutive months.
“The Southern Peninsular Palm Oil Millers Association reported that production in the first 10 days of June shrank by 17.24 per cent compared to the same period in May, reversing the earlier 19 per cent increase recorded in the first five days of the month,” he told Bernama.
Meanwhile, Mumbai-based Sunvin Group commodity research head Anilkumar Bagani said a stronger ringgit against the US dollar and weak demand from destinations other than India also dampened sentiment in the local market for purchasing the golden commodities.
At the close, the spot-month June 2025 fell by RM30 to RM3,846 per tonne, July 2025 declined by RM30 to RM3,842 per tonne, and August 2025 dropped by RM25 to RM3,839 per tonne.
September 2025 slipped by RM22 to RM3,839 per tonne, October 2025 slid by RM19 to RM3,840 per tonne, and November 2025 decreased by RM15 to RM3,846 per tonne.
Trading volume dwindled to 54,747 lots from 68,659 lots on Tuesday, while open interest tumbled to 180,901 contracts from 247,754 contracts previously.
The physical CPO price for June South fell by RM50 to RM3,890 per tonne.
-- BERNAMA