PALMOILMAGAZINE, JAKARTA – Crude palm oil (CPO) futures on the Bursa Malaysia Derivatives Exchange continued their upward momentum for a third consecutive trading session on Tuesday (19/5/2026), supported by market speculation over possible export restrictions from Indonesia, the world’s largest palm oil exporter.
According to Reuters, the benchmark August 2026 CPO contract closed RM53 per ton higher, or approximately 1.17%, at RM4,587 per ton. During afternoon trading, the contract had surged as much as 2.23% before easing slightly toward the market close.
The bullish trend was also reflected in Indonesia’s domestic market. Crude palm oil prices at PT Kharisma Pemasaran Bersama Nusantara (KPBN) were set at IDR 15,388 per kilogram on Tuesday, up IDR 88 per kilogram, or around 0.58%, compared to Monday’s level of IDR 15,300 per kilogram.
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Apart from rumors surrounding Indonesia’s export policy, stronger vegetable oil prices in China also provided additional support to the palm oil market. The most active soybean oil contract on the Dalian Commodity Exchange rose 1.67%, while palm oil futures on the same exchange gained 1.76%.
The increase in competing vegetable oil prices was seen as supporting global palm oil prices, as the vegetable oil market remains closely interconnected and heavily influenced by supply and demand dynamics across commodities.
Market participants are also continuing to monitor developments related to Indonesia’s biodiesel policy as well as potential shifts in global trade flows amid tightening global vegetable oil supplies.
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The recent rally in CPO prices suggests market sentiment remains relatively positive, although volatility is expected to stay elevated due to ongoing speculation over export policies and uncertainty in the global energy market. (P3)
