PALMOILMAGAZINE, JAKARTA – The price of crude palm oil (CPO) at PT Kharisma Pemasaran Bersama Nusantara (KPBN) Inacom was set at IDR13,415/kg on Tuesday (June 24, 2025), marking a decline of IDR315/kg or approximately 2.29% compared to Monday’s price of IDR13,730/kg.
According to information obtained by Palmoilmagazine.com from KPBN, CPO prices for Franco Belawan and Dumai were recorded at IDR13,415/kg. Meanwhile, the FOB prices were set at IDR13,015/kg for East Kalimantan and IDR13,065/kg for West Kalimantan.
On the international front, Reuters reported a significant decline in CPO futures on the Malaysian exchange, ending a four-day rally. The downturn was driven by weaker soybean oil prices on the Chicago Board of Trade and falling global crude oil prices following the easing of geopolitical tensions in the Middle East.
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Benchmark CPO futures for September 2025 delivery (FCPOc3) on the Malaysia Derivatives Exchange dropped RM126 per metric ton or 3.05%, closing at RM4,000 per ton (around US$940.73)—marking the largest daily loss since April 7.
The decline followed an announcement by U.S. President Donald Trump of a ceasefire agreement between Israel and Iran, easing geopolitical risks in the region. This development also pushed crude oil prices lower, which tend to move in tandem with palm oil due to their shared role as biodiesel feedstock.
Soybean oil futures also showed weakness, with the most active contract on the Dalian Commodity Exchange (DBYcv1) falling by 2.07%, and palm oil futures on the same exchange (DCPcv1) seeing a similar decline. On the Chicago Board of Trade, soybean oil prices (BOcv1) dropped by 1.05%.
This created a double pressure for the CPO market, which directly competes with soybean oil in the global export landscape. Analysts expect short-term palm oil prices to remain volatile, influenced by global sentiment, geopolitical stability, movements in crude oil prices, and demand from key importing countries such as India and China.
KPBN Tender Results (IDR/Kg, excluding VAT) for Tuesday (June 24, 2025):
CPO
- Franco Belawan & Dumai: IDR13,415 – EO0, EUP
- FOB East Kalimantan: IDR13,015 – EUP
- FOB West Kalimantan: IDR13,065 – EUP
CPKO
- Franco Dumai: IDR21,125 – IBP
PK
- Franco Medan/Belawan: IDR9,985 – MM
(P2)
