PALMOILMAGAZINE, JAKARTA – Crude palm oil (CPO) prices in Indonesia’s domestic market declined at the start of the week as trading activity at PT Kharisma Pemasaran Bersama Nusantara (KPBN) ended with several withdrawals after bids failed to meet sellers’ expectations.
According to data obtained by Palmoilmagazine.com, the highest bid recorded during Monday’s (June 15, 2026) CPO tender reached IDR 14,999/kg. The figure represented a decline of IDR 451/kg, or approximately 2.92%, compared with the previous trading session on Friday, when prices stood at IDR 15,450/kg.
At Dumai, the Franco CPO tender opened at IDR 15,450/kg. However, the auction concluded with a withdrawal after the highest offer reached only IDR 14,999/kg.
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A similar outcome was recorded at Teluk Bayur, where the opening price was set at IDR 15,320/kg. The tender was withdrawn after bids topped out at IDR 14,847/kg.
Meanwhile, at Talang Duku, the FOB CPO tender opened at IDR 15,250/kg but was also withdrawn after the highest bid reached only IDR 14,777/kg.
The decline in domestic prices mirrored softer sentiment in the international palm oil market. On the Bursa Malaysia Derivatives Exchange, benchmark August 2026 CPO futures traded largely unchanged after coming under pressure during early trading.
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Reuters reported that the benchmark contract was holding at RM4,475 per ton at the midday break, after briefly falling to RM4,438 per ton before recovering part of its losses.
Additional pressure came from competing vegetable oil markets. On China’s Dalian Commodity Exchange, the most active soybean oil contract fell 0.44%, while palm oil futures dropped 1.51%. In the United States, soybean oil futures on the Chicago Board of Trade (CBOT) declined by 0.97%.
The weakness in rival vegetable oils limited upside potential for palm oil, as these commodities compete directly in both food and biofuel markets.
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Market sentiment was also weighed down by falling crude oil prices. Oil markets slipped to their lowest levels since March following signs of easing geopolitical tensions in the Middle East.
Comments from U.S. President Donald Trump and Iranian officials regarding a potential agreement to end hostilities and reopen shipping routes through the Strait of Hormuz raised expectations of more stable global energy supplies, putting further pressure on crude oil prices.
Lower crude oil prices can reduce the competitiveness of palm-based biodiesel relative to fossil fuels, potentially weakening demand from the energy sector, one of the key drivers of global palm oil consumption.
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Amid these developments, traders are also monitoring Malaysia’s export policy. The Malaysian Palm Oil Board (MPOB) maintained the July 2026 reference CPO price at a level that keeps the country’s export duty at 10%.
Market participants are now awaiting fresh signals from major importing countries, movements in competing vegetable oil markets, and developments in the global energy sector, all of which are expected to play a crucial role in determining the direction of palm oil prices in the coming days. (P3)
