PALMOILMAGAZINE, JAKARTA – Crude palm oil (CPO) prices on the Bursa Malaysia Derivatives Exchange weakened again on Thursday (21/5/2026), extending losses for a second consecutive session amid slowing export demand and pressure from the global vegetable oil market.
According to Reuters, the benchmark August 2026 CPO contract on the Bursa Malaysia Derivatives Exchange fell RM55 per ton, or about 1.2 percent, to RM4,528 per ton during the midday trading break.
The decline was driven by market concerns over slowing Malaysian palm oil exports throughout May 2026. According to cargo surveyor data, Malaysia’s palm product exports during the May 1–20 period were estimated to have dropped between 13.9 percent and 20.5 percent compared to the previous month.
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The weaker export performance intensified negative sentiment in the market, particularly as competing vegetable oils such as soybean oil also moved lower globally.
In the domestic market, CPO prices at PT Kharisma Pemasaran Bersama Nusantara (KPBN) also came under significant pressure. During trading on Thursday (21/5/2026), KPBN’s CPO tender ended in withdrawal (WD), with the highest bid recorded at IDR 12,285/kg.
The bid price dropped IDR 2,215/kg, or around 15.21 percent, compared to Wednesday’s (20/5/2026) highest bid level of IDR 14,500/kg.
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Meanwhile, in other global vegetable oil markets, the most active soybean oil contract on the Dalian Commodity Exchange fell 0.61 percent, while palm oil futures on the same exchange weakened about 1 percent.
Additional pressure also came from the United States market, where soybean oil prices on the Chicago Board of Trade (CBOT) slipped around 0.43 percent.
Market participants are continuing to monitor export demand developments from major consuming countries, including India and China, amid volatility in global vegetable oil prices and movements in the energy market.
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Despite the short-term correction, market observers still see global CPO demand fundamentals as relatively solid, supported by biodiesel consumption and rising food demand in several developing countries. (P3)
