PALMOILMAGAZINE, JAKARTA — Global crude palm oil (CPO) prices extended their upward trend for the fifth consecutive day on Wednesday (April 1, 2026), with gains driven by positive sentiment surrounding Indonesia’s B50 biodiesel program and firmer global crude oil prices.
The benchmark CPO contract for June 2026 delivery on the Bursa Malaysia Derivatives Exchange rose by RM33 per ton, or approximately 0.68%, reaching RM4,861 per ton during the midday session. This ongoing price increase reflects growing market confidence in Indonesia’s plan to raise the mandatory blending rate for palm oil-based biodiesel from 40% to 50% starting July 1, 2026.
Beyond policy support, stronger Malaysian palm oil exports also contributed significantly to the price momentum. Data from cargo surveyors indicated that Malaysia’s palm product exports surged between 44.3% and 56.7% month-on-month in March.
Also Read: Indonesia Accelerates Biofuel and Bioethanol Drive to Strengthen Energy Independence
Additional support came from a weaker ringgit, which improved export competitiveness, as well as rising vegetable oil prices in China, further reinforcing bullish sentiment in the global market.
In the domestic market, CPO prices traded through PT Kharisma Pemasaran Bersama Nusantara (KPBN) also moved higher. On the same day, prices were set at IDR 16,225/kg, up by IDR 175/kg or 1.09% compared to the previous session’s level of IDR 16,050/kg.
Meanwhile, movements in other global vegetable oil markets were mixed. The most active soybean oil contract on the Dalian exchange edged up 0.16%, while palm oil futures on the same exchange slipped 0.1%. In contrast, soybean oil prices on the Chicago Board of Trade declined by around 0.55%.
Also Read: Indonesia Sets CPO Reference Price for April 2026 at USD 989.63/MT, Export Duty Increases
Overall, the combination of Indonesia’s domestic policy direction, robust Malaysian export performance, and broader vegetable oil market dynamics continues to underpin the positive trajectory of global CPO prices. (P3)
