PALMOILMAGAZINE, JAKARTA – Indonesia’s crude palm oil (CPO) market posted a modest decline on Tuesday (June 9), tracking weakness in global palm oil prices as concerns over export demand continued to weigh on sentiment.
Based on the latest tender results from PT Kharisma Pemasaran Bersama Nusantara (KPBN), the domestic CPO reference price was set at IDR 15,155 per kilogram, down IDR 20 per kilogram, or approximately 0.13%, from IDR 15,175 per kilogram recorded a day earlier.
Data obtained by Palmoilmagazine.com showed that CPO prices for Franco Kuala Tanjung and Dumai were both set at IDR 15,155 per kilogram. Meanwhile, Franco Teluk Bayur was priced at IDR 15,025 per kilogram, FOB Talang Duku at IDR 14,955 per kilogram, and loco Parindu at IDR 14,805 per kilogram.
Trading activity for downstream palm products remained relatively subdued. For crude palm kernel oil (CPKO), the Franco Dumai tender was listed at IDR 28,148 per kilogram but was withdrawn (WD), with the highest bid reaching IDR 25,300 per kilogram. The FOB Lampung tender was also withdrawn at IDR 28,074 per kilogram, while the highest offer stood at IDR 20,000 per kilogram.
In the palm kernel (PK) segment, the Franco Belawan tender was quoted at IDR 13,147 per kilogram and was likewise withdrawn. The highest bid submitted reached IDR 12,560 per kilogram.
The domestic price correction mirrored developments in the international market. On the Bursa Malaysia Derivatives Exchange, the benchmark August 2026 palm oil futures contract fell RM77 per tonne, or about 1.68%, to RM4,498 per tonne during the midday trading session.
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According to Reuters, the decline was driven primarily by weak export demand, which continued to pressure market sentiment despite early signs of improving palm oil production in Malaysia during June.
Additional pressure came from cargo surveyor data indicating that Malaysia’s palm oil product exports in May 2026 fell compared with the previous month. Export volumes were estimated to have declined between 8.8% and 15.5% month-on-month, highlighting persistent softness in international demand.
Market participants are now focused on the upcoming monthly report from the Malaysian Palm Oil Board (MPOB), scheduled for release on Wednesday (June 10). The report is expected to provide updated figures on production, inventories, and exports, which could significantly influence short-term price movements.
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Elsewhere in the vegetable oils market, sentiment remained broadly negative. The most active soybean oil contract on China’s Dalian Commodity Exchange fell 0.98%, while Dalian palm oil futures declined 1.27%. In the United States, soybean oil futures on the Chicago Board of Trade (CBOT) slipped 0.63%.
Traders are awaiting the MPOB data for a clearer picture of global palm oil supply and demand fundamentals. A larger-than-expected increase in inventories could keep prices under pressure, while tighter stock levels may provide support and improve market sentiment in the days ahead. (P3)
