PALMOILMAGAZINE, JAKARTA – Malaysian crude palm oil (CPO) futures retreated on Tuesday (June 9), reversing gains recorded in the previous session as sluggish export demand continued to weigh on market sentiment despite early indications of improving production in June.
According to Reuters, the benchmark August 2026 palm oil contract on the Bursa Malaysia Derivatives Exchange fell RM77 per tonne, or approximately 1.68%, to RM4,498 per tonne during the midday trading break. The decline reflected market caution over the outlook for global vegetable oil demand.
Export performance remained a key concern for traders. Cargo surveyors reported that Malaysia’s palm oil product exports in May 2026 declined compared with the previous month, with shipments estimated to have fallen between 8.8% and 15.5% on a month-to-month basis.
Market participants are now closely watching the Malaysian Palm Oil Board (MPOB) supply and demand report scheduled for release on Wednesday (June 10). The report is expected to provide fresh insights into production, inventories, and export trends, making it a critical indicator for short-term price direction.
In Indonesia, crude palm oil prices also edged lower. At PT Kharisma Pemasaran Bersama Nusantara (KPBN), the CPO reference price was set at IDR 15,155 per kilogram on Tuesday, down IDR 20 per kilogram, or around 0.13%, from IDR 15,175 per kilogram recorded on Monday.
The weakness in palm oil was mirrored across other vegetable oil markets. The most active soybean oil contract on China’s Dalian Commodity Exchange declined 0.98%, while Dalian palm oil futures fell 1.27%.
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Meanwhile, soybean oil futures on the Chicago Board of Trade (CBOT) in the United States slipped 0.63%, highlighting broader weakness across the global vegetable oil complex.
Analysts said the upcoming MPOB report could be the next major catalyst for the market. Stronger-than-expected production growth may add pressure to prices, while a tighter stock outlook could provide support and help stabilize the market after recent declines.
For now, traders remain cautious as they await clearer signals from fundamental supply and demand data before taking new positions in the palm oil market. (P3)
