PALMOILMAGAZINE, JAKARTA – The price of crude palm oil (CPO) in Indonesia’s KPBN Inacom tender strengthened on Thursday (March 5, 2026), reflecting improved sentiment in both domestic and global vegetable oil markets.
CPO offered through PT Kharisma Pemasaran Bersama Nusantara (KPBN) was set at IDR 14,800 per kilogram, rising IDR 100/kg or about 0.69% from the IDR 14,700/kg recorded on Wednesday (March 4, 2026).
Based on information obtained from KPBN, the Franco Belawan and Dumai CPO price was set at IDR 14,800/kg, while Franco Teluk Bayur was priced slightly lower at IDR 14,670/kg.
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Meanwhile, the Loco Luwu tender opened at IDR 14,361/kg, but the auction was eventually withdrawn (WD) after the highest bid reached only IDR 10,000/kg.
In the global market, CPO futures on the Bursa Malaysia Derivatives Exchange also closed higher during Thursday’s trading session. The upward movement was supported by rising global crude oil prices amid escalating geopolitical tensions between the United States and Iran.
Senior Analyst at Fastmarkets Palm Oil Analytics, Sathia Varqa, noted that the rally in crude oil and soybean oil prices served as key catalysts supporting palm oil futures.
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“The increase in palm oil prices is also supported by market optimism over the potential decline in Malaysia’s palm oil stocks at the end of February,” he said, as quoted by Bernama.
At the close of trading, the March 2026 and April 2026 contracts each gained RM25, settling at RM4,096 per ton and RM4,180 per ton, respectively.
The May 2026 contract rose RM28 to RM4,207 per ton, while June and July 2026 contracts increased RM29 each to RM4,218 and RM4,217 per ton.
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Meanwhile, the August 2026 contract advanced RM28 to close at RM4,208 per ton.
Trading activity also showed stronger momentum, with total volume rising to 127,102 lots, compared to 76,192 lots in the previous session on Wednesday. However, open interest declined slightly to 218,820 contracts, down from 221,298 contracts previously.
In the physical market, the March CPO delivery price in South Malaysia was reported to have increased RM20 to RM4,120 per ton. (P2)
