PALMOILMAGAZINE, JAKARTA – Crude palm oil (CPO) trading on the Malaysian Derivatives Exchange continued its downward trend on Tuesday (April 7, 2026), marking a second consecutive day of losses amid pressure from the global energy market.
According to Reuters, the benchmark June 2026 CPO contract fell by RM45 per ton, or about 0.94%, to RM4,766 per ton. The contract had briefly gained during intraday trading but reversed course and closed lower by the end of the session.
The decline was largely driven by weaker global crude oil prices, which reduced the attractiveness of palm oil as a biodiesel feedstock. This dynamic has led to more cautious market sentiment, particularly amid ongoing volatility in energy markets.
Also Read: Indonesia’s B50 Push May Create Diesel Oversupply While Fuel Prices Stay Unchanged
Despite the bearish pressure, underlying market fundamentals remain relatively supportive. A Reuters survey indicated that Malaysia’s palm oil stocks in March likely recorded their steepest drop in three years, reaching the lowest level since July last year. The decline was mainly attributed to stronger export growth outpacing production gains.
Market participants are now awaiting the official supply and demand report from the Malaysian Palm Oil Board (MPOB), scheduled for release on April 10. The report is expected to provide clearer direction for the market, particularly regarding production, inventory levels, and export performance.
Meanwhile, Indonesia’s domestic market showed a different trend. CPO prices set by PT Kharisma Pemasaran Bersama Nusantara (KPBN) rose to IDR 16,275/kg, up by IDR 75/kg or approximately 0.46% compared to the previous day’s level of IDR 16,200/kg. The increase reflects relatively stable domestic demand despite external pressures.
Also Read: Indonesia to Launch B50 Biodiesel in July 2026, Saving 4 Million KL of Fuel
In other vegetable oil markets, price movements were mixed. On the Dalian Commodity Exchange, the most active soybean oil contract gained 0.85%, while palm oil futures slipped by 0.36%.
Overall, the CPO market remains in a consolidation phase, as participants weigh external pressures from energy prices against tightening supply fundamentals. (P3)
