PALMOILMAGAZINE, JAKARTA – Global crude palm oil (CPO) prices came under significant pressure at the close of trading on Friday (April 10, 2026), snapping a five-week rally and signaling a shift in market sentiment amid growing global uncertainty.
According to Reuters, the benchmark June 2026 CPO contract on the Bursa Malaysia Derivatives Exchange fell by RM108 per ton, or 2.33%, to RM4,535 per ton, equivalent to approximately USD1,144.05 per ton.
The decline pushed the weekly loss to 6.28%, marking the steepest drop in nearly 16 months and bringing an end to the recent bullish trend that had been supported by tight supply expectations and strong export demand.
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Market pressure largely stems from concerns over a potential surge in production during the peak harvesting season from April to June. This anticipated increase in output is expected to outpace global demand, which remains constrained by economic slowdown and the ongoing geopolitical tensions in the Middle East that have also driven up logistics costs.
On the fundamental side, data showed that Malaysia’s palm oil inventories in March 2026 declined for the third consecutive month, reaching the lowest level in seven months. The drop was mainly driven by stronger export growth compared to production increases.
However, market participants believe that the inventory drawdown is not strong enough to support prices in the short term, particularly as signs of weakening global demand continue to emerge.
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This concern is reinforced by cargo surveyor data, which indicated that Malaysian palm oil exports during April 1–10 fell sharply by between 30.7% and 38.9% compared to the previous period. The steep decline has intensified fears of slowing global consumption.
In the domestic market, CPO prices through tender at PT Kharisma Pemasaran Bersama Nusantara (KPBN) also showed a downward trend. On Friday (April 10, 2026), CPO prices were withdrawn (WD), with the highest bid recorded at IDR 15,589/kg.
This marked a decrease of IDR 189/kg, or around 1.2%, compared to Thursday (April 9, 2026), when prices reached IDR 16,778/kg. The correction reflects the spillover impact of weakening global prices on the domestic market.
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Meanwhile, other vegetable oils showed mixed performance. The most active soybean oil contract in Dalian rose by 0.4%, while its palm oil contract edged up 0.11%. In contrast, soybean oil prices on the Chicago Board of Trade declined by 0.87%.
Overall, the global vegetable oil market is currently in a consolidation phase, with strong short-term pressure. Market participants are closely monitoring production trends, demand dynamics, and geopolitical developments that could shape the direction of CPO prices in the coming weeks. (P3)
