PALMOILMAGAZINE, KUALA LUMPUR — Crude palm oil (CPO) futures on Bursa Malaysia weakened on Monday (January 19, 2026), as the market reacted to two major bearish signals: China’s decision to reduce tariffs on Canadian canola and Indonesia’s move to cancel the planned implementation of the B50 biodiesel mandate this year.
According to a Reuters report, the benchmark April 2026 CPO contract on the Bursa Malaysia Derivatives Exchange fell RM15 per ton, or 0.37%, to RM4,057 per ton, equivalent to around US$1,000.99. The decline followed last Friday’s strong close, when the same contract gained 2.31%.
The pullback reflected concerns over the potential increase in global vegetable oil supply after China eased trade barriers on Canadian canola. At the same time, Indonesia’s decision to shelve the B50 program dampened expectations of a sharp rise in domestic palm oil demand, removing one of the key bullish drivers anticipated by the market.
Also Read: Maybank IB: 2026 CPO Prices to Stay Firm, Indonesia’s B50 Policy Could Move the Market
Despite the correction, traders said further downside was limited by seasonal fundamentals. Demand is expected to strengthen ahead of major consumption periods, including Lunar New Year and Ramadan, which coincide with the first-quarter low production cycle in key producing countries.
The combination of improving consumption and tightening seasonal output is widely seen as a stabilizing factor that could prevent prices from falling more sharply.
Market participants are also closely watching upcoming export data. Several cargo surveyors are scheduled to release estimates of Malaysia’s palm oil exports for January 1–20, figures that are often used as an early gauge of global demand momentum.
Meanwhile, other vegetable oil markets showed mixed movements. The most active soyoil contract on the Dalian Commodity Exchange rose 0.45%, while Dalian palm oil futures gained 0.3%. Trading in soyoil on the Chicago Board of Trade was closed due to a national holiday. (P3)
