PALMOILMAGAZINE, JAKARTA – Crude palm oil (CPO) prices on the Bursa Malaysia Derivatives continued to weaken on Wednesday (13/5/2026), pressured by slowing demand from the world’s two largest consumers, India and China. The weaker buying sentiment pushed benchmark prices to their lowest closing level in the past two months.
According to Reuters, the benchmark July 2026 CPO futures contract fell RM41 per metric ton, or about 0.91%, to close at RM4,440 per metric ton. The settlement marked the lowest closing price since March 10, 2026.
Market participants said declining import demand from India and China has started to weigh heavily on the global palm oil market. The pressure has also been intensified by fierce competition from other vegetable oils, particularly soybean oil and sunflower oil.
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In the domestic market, CPO prices at PT Kharisma Pemasaran Bersama Nusantara (KPBN) also moved lower. On Wednesday (13/5/2026), KPBN set CPO prices at IDR 15,100 per kilogram, down IDR 50 per kilogram or around 0.33% from Tuesday’s (12/5/2026) level of IDR 15,150 per kilogram.
Meanwhile, data from the Solvent Extractors’ Association of India showed that the country’s palm oil imports in April 2026 plunged 26% from the previous month, reaching the lowest level in four months. The decline was attributed to weaker institutional demand and elevated CPO prices, which narrowed the price gap with competing vegetable oils.
Analysts noted that the tighter price spread has encouraged buyers to shift toward alternative edible oils considered more competitive. India remains one of the largest destinations for global palm oil exports, making the decline in its imports a key factor affecting market sentiment.
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Across other vegetable oil markets, price movements were mixed. The most active soybean oil contract on the Dalian Commodity Exchange slipped 0.04%, while palm oil futures on the same exchange dropped 1.28%.
In contrast, soybean oil prices on the Chicago Board of Trade (CBOT) edged up by 0.11%. The slight increase reflected cautious market sentiment as traders continued to monitor global vegetable oil demand and production developments among major producing countries.
Industry players expect CPO prices to remain under pressure in the near term, particularly if demand recovery from India and China remains sluggish. In addition, volatility in energy prices and currency exchange rates is likely to continue influencing the direction of the global palm oil market. (P3)
