PALMOILMAGAZINE, JAKARTA – Crude palm oil (CPO) prices at PT Kharisma Pemasaran Bersama Nusantara (KPBN) recorded a sharp decline on Wednesday (20/5/2026), with several tenders ending in withdrawal (WD) amid weaker market sentiment and growing concerns over Indonesia’s upcoming export governance reform.
The highest CPO bid was recorded at IDR14,500/kg, down Rp888/kg or approximately 5.77% compared with Tuesday’s (19/5/2026) level of IDR15,388/kg.
According to information obtained by Palmoilmagazine.com from KPBN, the Franco Dumai CPO tender opened at IDR15,500/kg but was later withdrawn, with the highest offer reaching only IDR14,500/kg. Meanwhile, the Loco Parindu CPO tender opened at IDR15,038/kg and was also withdrawn after the highest bid reached IDR14,850/kg.
For downstream products, crude palm kernel oil (CPKO) FOB Palembang was withdrawn at the highest bid of Rp29,600/kg from the opening price of IDR30,555/kg. Palm kernel (PK) Franco Belawan was recorded at IDR15,311/kg.
In the global market, CPO trading on the Bursa Malaysia Derivatives Exchange remained largely unchanged during the same trading session. Market participants continued to assess the impact of Indonesia’s plan to establish a state-controlled export management body for strategic commodities, while weaker Malaysian palm oil export data added pressure to sentiment.
Reuters reported that the benchmark August 2026 CPO contract on Bursa Malaysia edged down RM2 per ton, or around 0.04%, closing at RM4,583 per ton.
Investors were closely monitoring Indonesian President Prabowo Subianto’s statement that the government would establish a state-owned enterprise to oversee exports of strategic natural resources, including palm oil, coal, and ferroalloys. The policy is expected to influence global palm oil trade flows and supply dynamics if implemented with stricter export controls.
Additional pressure came from weaker Malaysian export performance. Cargo surveyor data showed that Malaysia’s palm oil product exports during the 1–20 May 2026 period fell between 13.9% and 20.5% compared with the same period in the previous month.
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Meanwhile, competing vegetable oil markets posted gains. The most active soybean oil contract on the Dalian Exchange rose 1.31%, while Dalian palm oil futures gained 1.44%. Soybean oil prices on the Chicago Board of Trade (CBOT) also increased 0.24%, providing limited support to the broader vegetable oil market. (P3)
