PALMOILMAGAZINE, JAKARTA – Crude palm oil (CPO) prices continued to face significant pressure in global markets, tracking the decline in crude oil prices following a ceasefire agreement between the United States and Iran.
According to a report by Reuters, the benchmark June 2026 CPO futures contract on the Bursa Malaysia Derivatives dropped sharply during Wednesday’s (April 8, 2026) trading session. Prices fell by RM150 per ton, or about 3.15%, to RM4,615 per ton at the midday break, marking a third consecutive day of losses.
The global downturn also impacted the domestic market. In Indonesia, CPO traded through PT Kharisma Pemasaran Bersama Nusantara (KPBN) ended in withdrawal (WD), with the highest bid reaching IDR 15,750/kg. This reflects a decline of IDR 525/kg, or approximately 3.23%, compared to the previous day’s level of IDR 16,275/kg.
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The weakness was not limited to palm oil. Other vegetable oil markets also came under pressure. On the Dalian exchange, soybean oil futures fell by 2.73%, while palm oil contracts dropped by as much as 3.76%. A similar trend was observed on the Chicago Board of Trade, where soybean oil prices declined by 3.63%.
This broad-based decline highlights the strong correlation between vegetable oil prices and global crude oil movements. When energy prices weaken, the attractiveness of biofuel feedstocks such as palm oil diminishes, adding further downward pressure on CPO prices.
Meanwhile, the Malaysian government is considering a gradual nationwide expansion of its palm-based B20 biodiesel program. The policy is expected to support domestic demand, although its implementation will remain sensitive to fluctuations in global energy prices.
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Under these conditions, market participants are likely to closely monitor developments in crude oil markets and biodiesel policies, as these factors will play a crucial role in shaping the short-term direction of CPO prices. (P3)
