PALMOILMAGAZINE, JAKARTA – The price of crude palm oil (CPO) at PT Kharisma Pemasaran Bersama Nusantara (KPBN) Inacom dropped to IDR 13,500/kg on Monday (May 5, 2025). This marks a decrease of 1.51% or IDR 207/kg compared to the highest offer on Friday (May 2, 2025), which reached IDR 13,707/kg.
According to information obtained by Palmoilmagazine.com from KPBN, the CPO price Franco Belawan was set at IDR 13,500/kg. Meanwhile, the price for Franco Dumai opened at IDR 13,500/kg, but the tender was withdrawn (WD) with the highest offer recorded at IDR 13,290/kg.
Quoting Reuters, palm oil futures on the Malaysian exchange fell on Monday (May 5, 2025), marking the fifth consecutive session of decline. The market was pressured by the continued strength of the ringgit and declining soybean oil and crude oil futures on the Chicago Board of Trade.
Also Read: Indonesian CPO Reference Price Drops to USD 924.46/MT for May 2025 Amid Global Market Pressure
The benchmark palm oil contract (FCPOc3) for July 2025 delivery on the Bursa Malaysia Derivatives Exchange fell by RM93 per ton, down 2.4%, to RM3,788 (US$902.33) per metric ton during the mid-day break.
According to Darren Lim, commodity strategist at Singapore-based brokerage Phillip Nova, the continued weakness in crude oil further diminishes the appeal of palm oil and other vegetable oils as biodiesel feedstocks, contributing to a bearish tone in the market.
Additionally, Malaysia’s palm oil stockpiles are expected to rise for the second consecutive month in April, as the industry approaches its peak production season. The second half of the year is anticipated to bring a significant boost in output, according to a Reuters survey.
Soybean oil on the Chicago Board of Trade (BOcv1) fell by 2.14%. Meanwhile, the Dalian Commodity Exchange was closed from May 1 to May 5 for the Labor Day holiday.
KPBN Tender Results (IDR/kg, Excl. VAT) – Monday (May 5, 2025):
- Franco Belawan: IDR 13,500 – EOP
- Franco Dumai: IDR 13,500 (WD), Highest bid: IDR 13,290 – EUP
- FOB Talang Duku: IDR 13,300 (WD), Highest bid: IDR 13,108 – PSCOI
- Franco Teluk Bayur: IDR 13,370 (WD), Highest bid: IDR 13,110 – WNI
- Loco Pelaihari: IDR 12,946 (WD), Highest bid: IDR 12,245 – WNI
(P2)
