PALMOILMAGAZINE, JAKARTA — Crude palm oil (CPO) futures on the Bursa Malaysia Derivatives Exchange closed lower again on Thursday (May 7, 2026), extending losses for a second consecutive trading session. The market remained under pressure from a combination of external factors, including weaker global soybean oil prices, a stronger Malaysian ringgit, and expectations of rising Malaysian palm oil production.
According to Reuters, the benchmark July 2026 CPO contract on Bursa Malaysia fell by RM20 per ton, or around 0.44 percent, to RM4,559 per ton during the midday trading break.
The decline in CPO prices was also influenced by the narrowing spread between palm oil and gas oil prices, reducing palm oil’s competitiveness as a feedstock for the energy sector, particularly biodiesel production. Market sentiment was further weakened by the sharp drop in global crude oil prices during the previous trading session, which broadly pressured commodity markets.
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A Reuters survey previously indicated that Malaysia’s palm oil inventories and exports were likely to decline in April. However, production is expected to rise significantly as seasonal output begins recovering after lower production levels earlier this year.
Market participants are now awaiting the release of monthly supply and demand data from the Malaysian Palm Oil Board (MPOB) scheduled for May 11. The report is expected to provide a key indication of short-term CPO price direction, particularly regarding developments in Malaysia’s stock levels, production, and exports as one of the world’s largest palm oil producers.
Meanwhile, domestic CPO prices at PT Kharisma Pemasaran Bersama Nusantara (KPBN) also recorded a withdrawal (WD) during Thursday’s tender session. The highest bid for CPO was recorded at IDR 15,222/kg.
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As a result, KPBN CPO prices declined by IDR 50/kg compared to Wednesday’s (May 6, 2026) level of IDR 15,575/kg.
Pressure was also visible across other regional vegetable oil markets. The most active soybean oil contract on the Dalian exchange fell 1.14 percent, while palm oil futures on the same exchange declined 1.48 percent. In the United States, soybean oil prices on the Chicago Board of Trade (CBOT) also slipped by 0.32 percent.
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The developments indicate that bearish sentiment continues to weigh on the global vegetable oil market, although traders remain focused on production and demand trends ahead of the official MPOB report next week. (P3)
