Lang
Crude palm oil (CPO) futures on Bursa Malaysia Derivatives closed higher today, buoyed by strong performance in soybean oil prices on the Chicago Board of Trade (CBOT).
David Ng, a proprietary trader at Kuala Lumpur-based Iceberg X Sdn Bhd, said this strong performance was influenced by the Trump administration's plan to announce biofuel quotas by March.
"This is likely to boost overall demand for soybean oil, which in turn lifts sentiment in the palm oil market. As soybean oil prices rise, palm oil is seen as a competitive alternative, which supports buying interest among traders," he added.
He told Bernama that "this development has helped improve market sentiment, with expectations that stronger demand prospects for vegetable oils in general will provide support for palm oil prices in the near term".
International media reported yesterday that the Trump administration plans to finalise biofuel quotas in early March, while abandoning a plan to impose penalties on imports of renewable fuel and feedstocks.
Ng noted that prices are finding support at 4,000 ringgit, while resistance lies at 4,100 ringgit.
At the close, the January 2026 contract rose by 65 ringgit to 4,026 ringgit a tonne, the February 2026 contract gained 77 ringgit to 4,057 ringgit a tonne, and the March 2026 contract climbed 82 ringgit to 4,072 ringgit a tonne.
The April 2026 contract also advanced 82 ringgit to 4,079 ringgit a tonne, the May 2026 contract strengthened 84 ringgit to 4,082 ringgit a tonne, and the June 2026 contract jumped 85 ringgit to 4,077 ringgit a tonne.
Trading volume fell to 96,095 lots, compared with 147,837 lots on Thursday, while open interest declined to 249,340 contracts from 259,206 previously.
The spot price for crude palm oil for January in the southern region rose by 60 ringgit to 4,050 ringgit a tonne.
Source: Bernama