By Durratul Ain Ahmad Fuad
KUALA LUMPUR, Nov 3 (Bernama) -- Crude palm oil (CPO) futures on Bursa Malaysia Derivatives ended lower today, pressured by estimates of record-high Malaysian palm oil inventories in October, raising concerns over persistent oversupply despite stronger export demand.
Iceberg X Sdn Bhd proprietary trader David Ng said the Reuters Poll estimated October end-stocks would rise 6.8 per cent to 3.75 million tonnes from 3.51 million tonnes in September, while production was estimated to increase 3.8 per cent to 2.20 million tonnes from 2.12 million tonnes.
Exports were estimated to rise 42.8 per cent to 1.60 million tonnes from 1.12 million tonnes, while imports were expected to decrease to 50,000 tonnes from 58,000 tonnes.
“We see immediate support around RM4,550 per tonne and resistance at RM4,750 per tonne, with market sentiment likely to remain cautious ahead of the official Malaysian Palm Oil Board supply and demand report,” he told Bernama.
Meanwhile, Mumbai-based Sunvin Group head of commodity research Anilkumar Bagani said CPO futures extended their bearish momentum from Monday, weighed down by the absence of a Malaysian palm oil export tax waiver and expectations of a further increase in Malaysian palm oil inventories amid strong production.
He said the overnight sell-off in Chicago Board of Trade soybean oil futures and energy prices had also triggered weakness in palm oil futures.
“We estimate Malaysian palm oil stocks at the end of October 2026 at 3.81 million tonnes, up by 8.47 per cent from 3.51 million tonnes in September 2026. Production is up by 3.8 per cent, exports are up by 41 per cent, while imports and domestic consumption are also higher,” he said.
He said Malaysia’s palm oil exports in October were estimated by Intertek Testing Services at 1.65 million tonnes, an increase of 45.41 per cent from 1.13 million tonnes in September, while cargo surveyor Amspec Agri Malaysia also estimated palm oil exports at 1.65 million tonnes, up by 73.46 per cent from its September 2026 estimate.
“On the production front, the Southern Peninsular Palm Oil Millers Association has estimated that palm oil production at mills in the southern peninsula during October was down by 0.84 per cent.
“The market is now waiting for UOB Kay Hian and the Malaysian Palm Oil Association to release their full October Malaysian palm oil production data to get a better idea,” he added.
At the close, the November 2026 contract eased RM83 to RM4,350 per tonne, the December 2026 contract was down RM97 to RM4,457, the January 2027 contract slipped RM98 to RM4,551, the February 2027 contract went down RM96 to RM4,637, the March 2027 contract decreased RM92 to RM4,710 and the April 2027 contract weakened RM85 to RM4,760 per tonne.
Trading volume improved to 88,707 lots from 57,464 lots on Monday, while open interest rose to 337,745 contracts from 334,103 previously.
The physical CPO price for November South shed RM50 to RM4,370 per tonne.
-- BERNAMA