PALMOILMAGAZINE, JAKARTA – The price of crude palm oil (CPO) at PT Kharisma Pemasaran Bersama Nusantara (KPBN) was set at Rp14,494/kg on Monday, July 28, 2025, marking a modest increase of Rp44/kg or 0.3% compared to the highest offer price on Friday (July 25), which stood at Rp14,450/kg.
According to information obtained by Palmoilmagazine.com from KPBN, the Franco Belawan and Dumai CPO price was Rp14,494/kg, while the Loco Kembayan price was Rp14,044/kg.
Meanwhile, Reuters reported that CPO futures on the Malaysian Derivatives Exchange (BMD) continued to weaken for a second day. The decline was driven by falling prices in other edible oils and concerns over rising palm oil production and inventory levels.
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The October CPO contract on BMD dropped by RM31 or 0.73%, settling at RM4,242 per metric ton during the mid-day session—equivalent to US$1,005.69/ton.
In other related markets, the most active soybean oil contract on China’s Dalian Exchange slipped 0.61%, and palm oil contracts fell 0.89%. On the Chicago Board of Trade (CBOT), soybean oil prices were also down 0.32%.
Palm oil prices are heavily influenced by trends in competing vegetable oils, as they compete closely in the global market.
On a different note, global crude oil prices rose following a new trade agreement between the United States and the European Union, as well as signs that tariff suspensions with China may be extended. This helped ease concerns over a potential global economic slowdown and raised expectations of stronger fuel demand.
Higher crude oil prices typically enhance the attractiveness of palm oil as a biodiesel feedstock, which could theoretically support CPO prices.
However, on the export front, estimates from independent cargo surveyors indicated that Malaysian palm oil exports during the period of July 1–25 had declined by 9.2% to 15.2% compared to the same period in the previous month.
At the same time, the Malaysian ringgit, the currency used in palm oil trading, remained stable against the US dollar during Monday’s trading session.
KPBN Tender Results (Monday, July 28, 2025 | Price in Rp/kg, excl. VAT):
- CPO Franco Belawan & Dumai: Rp14,494 – (Buyers: UNILEVER, IBP)
- CPO Loco Kembayan: Rp14,044 – (Buyer: EUP)
- CPO Loco Pelaihari: Rp13,940 (Withdrawn). Highest bid: Rp13,289 – (Buyer: WNI)
(P2)
