PALMOILMAGAZINE, JAKARTA – Global crude palm oil (CPO) prices edged lower on Tuesday (March 17, 2026), ending a four-day rally as market sentiment weakened.
According to Reuters, the decline was recorded on the Bursa Malaysia Derivatives Exchange, driven by pressure from Chicago soyoil prices and uncertainty surrounding Indonesia’s strategic policy direction.
The benchmark June 2026 CPO futures contract fell by RM49 per ton, or about 1.05%, to RM4,605 per ton during the midday trading session.
Also Read: Jambi Palm Oil FFB Price Climbs to IDR 3,669.78/kg for March 13–April 2, 2026 Period
Beyond external factors, the market was also weighed down by domestic developments in Indonesia, particularly ongoing discussions on export tax revisions and the unclear implementation timeline of the B50 biodiesel mandate. The B50 policy refers to a fuel blend consisting of 50% palm-based biodiesel and 50% conventional diesel, which could significantly influence domestic CPO demand.
Meanwhile, global vegetable oil markets showed mixed movements. On the Dalian Exchange, soyoil futures declined by 1.33%, while palm oil contracts slipped 0.18%. In contrast, soyoil prices on the Chicago Board of Trade rose by around 1.05%.
Market participants are now closely watching Indonesia’s policy direction, especially regarding export taxes and the B50 mandate, as these factors are expected to play a crucial role in shaping CPO price trends in the near to medium term.
Also Read: India Delays Vegetable Oil Purchases as Shipping Costs Surge Amid Middle East Tensions
In the domestic market, CPO prices set by PT Kharisma Pemasaran Bersama Nusantara (KPBN) also recorded a decline. On Tuesday (March 17, 2026), prices were set at IDR 15,825 per kg, down by IDR 65 per kg or approximately 0.41% compared to the previous day’s level of IDR 15,890 per kg. (P3)
