PALMOILMAGAZINE, JAKARTA – Crude palm oil (CPO) prices at PT Kharisma Pemasaran Bersama Nusantara (KPBN) Inacom remained under pressure on Wednesday, May 7, 2025. The CPO price was set at Rp13,130/kg, marking a 1.40% drop or a decrease of Rp186/kg from Rp13,316/kg recorded on Tuesday (May 6).
From the information received by Palmoilmagazine.com from KPBN Inacom, the CPO Franco Belawan price was set at IDR 13,130 / kg. Then the Dumai Franco CPO price opened at IDR 13,130 / kg, but there was a withdrawal (WD) with the highest CPO price offer of IDR 13,101 / Kg.
Meanwhile, according to Reuters, Malaysian palm oil futures continued their downward trend for the seventh consecutive session on Wednesday (May 7). The drop was driven by concerns over rising production and sluggish demand from key consumer countries. These market pressures reflect broader uncertainties about global supply-demand dynamics, influenced by energy and biofuel policy developments.
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The July 2025 benchmark palm oil futures contract on the Malaysia Derivatives Exchange fell RM38 or 1%, reaching RM3,754/metric ton (approximately US$886.63) during the mid-day trading break.
“With palm oil production on the rise, U.S. biofuel policy shifts, and weakening demand from major consumer nations, palm oil prices are falling sharply,” said Sandeep Singh, Director of The Farm Trade, a Kuala Lumpur-based trading and consulting firm.
However, Singh noted that current price levels may be attractive for buyers to re-enter the market. He predicted a potential short-term recovery before another dip in the third quarter of the year.
Elsewhere in related markets:
- The most active soybean oil contract in Dalian rose 0.44%,
- But Dalian’s palm oil futures fell 0.95%,
- Meanwhile, soybean oil prices on the Chicago Board of Trade (CBOT) climbed 1.65%.
KPBN Tender Results (Excluding VAT) – Wednesday, May 7, 2025 (in Rp/kg):
CPO
- Franco Belawan: Rp13,130 – EOP
- Franco Dumai: Rp13,130 (WD), highest bid: Rp13,101 – EUP
- Franco Teluk Bayur: Rp13,000 (WD), highest bid: Rp12,880 – WIRA
- FOB Talang Duku: Rp12,930 (WD), highest bid: Rp12,911 – PRISCOLIN
- Loco Sei Tapung: Rp12,891 (WD), highest bid: Rp12,705 – WNI
- FOB South Kalimantan: Rp12,730 (WD), highest bid: Rp11,955 – WNI
CPKO (Crude Palm Kernel Oil)
- Franco Kuala Tanjung: Rp30,237 (WD), highest bid: Rp29,550 – SMART
- Loco Palembang: Rp29,873 (WD), highest bid: Rp27,900 – IKIN
PK (Palm Kernel)
- Franco Belawan: Rp13,435 (WD), highest bid: Rp13,365 – MM
(P2)
