PALMOILMAGAZINE, JAKARTA, AGRICOM – Malaysian crude palm oil (CPO) futures closed higher on Wednesday (June 10, 2026), rebounding from losses in the previous session as improving export prospects and lower production levels strengthened market sentiment.
The benchmark August 2026 CPO contract on the Bursa Malaysia Derivatives Exchange gained RM11 per tonne, or 0.24%, to settle at RM4,539 per tonne. The increase reflected renewed confidence among traders as fundamental indicators pointed to a more supportive market environment.
Market participants attributed the price recovery to a combination of stronger export demand and tighter supply conditions. According to the latest data from the Malaysian Palm Oil Board (MPOB), Malaysia’s palm oil production declined in May 2026 compared with the previous month.
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The production slowdown helped ease supply pressures and provided support to prices. However, MPOB data also showed that palm oil inventories increased for the second consecutive month in May.
The rise in stockpiles was largely driven by a sharper decline in exports than in production during the month. Despite lower output, domestic supplies remained sufficient to push inventories higher.
Even so, signs of improving demand have started to emerge. Cargo surveyors estimated that Malaysian palm oil product exports during June 1–10 increased by between 3.5% and 4.9% compared with the same period in the previous month.
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The stronger export performance has been viewed as an early indication of recovering international demand, particularly from major palm oil importing countries. Improved export momentum could help reduce inventory pressure in the coming months.
In Indonesia, CPO prices set by PT Kharisma Pemasaran Bersama Nusantara (KPBN) also moved higher. On Wednesday, KPBN’s CPO reference price reached IDR 15,225 per kilogram, up IDR 70 per kilogram, or approximately 0.46%, from IDR 15,155 per kilogram recorded on Tuesday.
The increase in Indonesian CPO prices mirrored the positive trend seen in Malaysia, which remains one of the key benchmarks for the global palm oil market.
Meanwhile, competing vegetable oils showed weaker performance. The most active soybean oil contract on the Dalian Commodity Exchange slipped 0.05%, while Dalian palm oil futures fell 0.13%.
In the United States, soybean oil futures on the Chicago Board of Trade (CBOT) edged down 0.01%. The relative weakness of competing vegetable oils improved palm oil’s competitiveness in the global edible oils market.
With export demand showing signs of recovery and supply tightening due to lower production, market participants will continue monitoring export and inventory data in the coming weeks for further direction on palm oil prices. (P3)
