Malaysian CPO Prices Drop Slightly Amid Pressure from Exports and Competing Vegetable Oils

Palm Oil Magazine
Malaysian palm oil futures moved slightly lower at midday trade, while Indonesia’s KPBN auction price rose, highlighting mixed sentiment across the regional palm oil market. Photo by: Palm Oil Magazine

PALMOILMAGAZINE, JAKARTA – Crude palm oil (CPO) prices showed mixed movement on Wednesday (29/4/2026), with benchmark futures in Malaysia edging lower while Indonesia’s domestic auction price moved higher amid cautious market sentiment.

According to Reuters, the benchmark July 2026 CPO contract on the Bursa Malaysia Derivatives Exchange slipped RM2 per ton, or around 0.04%, to RM4,534 per ton at the midday break. The relatively flat movement reflected a wait-and-see stance among market participants as they monitored mixed external signals.

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In Indonesia, crude palm oil prices at PT Kharisma Pemasaran Bersama Nusantara (KPBN) were set at Rp15,220/kg on Wednesday. The figure marked an increase of Rp98/kg, or about 0.66%, compared with the highest offer price recorded on Tuesday (28/4/2026) at Rp15,122/kg.

Also Read: GAPKI Marks 45 Years, Reaffirms Strategic Role in Indonesia’s Palm Oil Industry

Across rival vegetable oil markets, the most active soyoil contract on the Dalian Commodity Exchange rose 0.25%, while palm oil contracts on the same exchange declined 0.21%. The divergent trend suggests that global edible oil markets remain mixed as traders weigh demand prospects, supply conditions, and developments in the broader energy market.

Palm oil prices are highly sensitive to movements in competing vegetable oils, especially soybean oil, as both products compete aggressively for market share in food applications and biofuel demand.

Meanwhile, the Malaysian ringgit strengthened 0.03% against the US dollar, making palm oil relatively more expensive for overseas buyers using foreign currencies. Currency fluctuations remain an important factor in Malaysia’s palm oil trade as they directly affect export competitiveness.

Also Read: Unresolved Land Legality Slows Indonesia’s Smallholder Palm Replanting Drive

Additional pressure came from export performance. Cargo surveyor data showed Malaysia’s palm product exports for the period of 1–25 April 2026 were estimated to have fallen between 15.7% and 16.8% compared with the same period in the previous month.

The decline indicates that global demand is still under pressure, particularly from major importing countries that continue to navigate volatile commodity prices and elevated logistics costs.

Market participants are now expected to focus on end-April production figures, stock levels, and export demand trends, which could determine the next direction for palm oil prices in the near term. (P3)

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