PALMOILMAGAZINE, JAKARTA – Indonesia’s crude palm oil (CPO) prices extended their gains on Wednesday (June 3, 2026), supported by a strong rally in the Malaysian palm oil market and improving sentiment across global vegetable oil and energy markets.
According to data from PT Kharisma Pemasaran Bersama Nusantara (KPBN), the CPO price for Franco Belawa and Kuala Tanjung was set at IDR 15,025 per kilogram, marking an increase of IDR 175/kg, or approximately 1.18%, from the highest bid recorded on Tuesday at IDR 14,850/kg.
Meanwhile, Franco Talang Duku CPO was priced at IDR 14,825/kg, while Franco Teluk Bayur stood at IDR 14,875/kg.
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In the downstream segment, Crude Palm Kernel Oil (CPKO) prices at Franco Kuala Tanjung were set at IDR 28,300/kg. The same price was listed for Franco Dumai, although the transaction was withdrawn. The highest bid in Dumai reached IDR 27,250/kg. At FOB Palembang, CPKO was priced at IDR 27,944/kg, with the highest bid recorded at IDR 27,400/kg.
For palm kernel (PK), prices were reported at IDR 12,135/kg at Loco PKS Pengabuan, IDR 12,335/kg at Loco PKS Solok Selatan, and IDR 12,235/kg at Loco PKS Bunut.
The domestic price increase mirrored strong gains in Malaysian palm oil futures, which resumed trading after a long holiday break. Contracts on the Bursa Malaysia Derivatives Exchange closed sharply higher on Wednesday, driven by tightening supply expectations and stronger energy prices.
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Market participants cited concerns over declining palm oil production as a key catalyst behind the rally. Data from the Southern Peninsular Palm Oil Millers Association (SPPOMA) showed that palm oil production during May 1–31, 2026, fell by 10.07% compared to the previous period, reinforcing expectations of tighter short-term supplies.
Support also came from the energy market. Brent crude oil prices rose 2.08% to approximately US$98 per barrel during the same trading session. Higher energy prices typically improve the competitiveness of palm oil-based biodiesel, boosting demand prospects for the commodity.
At the close, June 2026 and July 2026 CPO futures contracts surged RM135 each to RM4,605 per tonne and RM4,638 per tonne, respectively.
August 2026 futures gained RM142 to RM4,677 per tonne, while September and October contracts rose RM144 each to RM4,705 per tonne and RM4,734 per tonne.
The November 2026 contract climbed RM141 to RM4,761 per tonne, reflecting continued market optimism regarding palm oil price prospects in the months ahead.
Trading activity also strengthened significantly. Total volume increased to 104,077 lots, up from 76,012 lots recorded before the holiday period. Open interest rose to 289,868 contracts from 285,715 contracts previously.
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In the physical market, Southern Malaysian CPO prices for June delivery increased by RM150 to RM4,640 per tonne, reinforcing the upward trend seen in both futures and spot markets.
The combination of lower production, rising energy prices, and stronger trading activity suggests that bullish sentiment continues to dominate the palm oil market. These factors have also provided support for Indonesia’s domestic CPO prices, which have continued to move higher in early June 2026. (P3)
