PALMOILMAGAZINE, JAKARTA – Crude palm oil (CPO) futures on the Bursa Malaysia Derivatives Exchange traded largely unchanged on Monday (June 15, 2026), recovering from earlier losses as the market grappled with weaker crude oil prices and a broad decline across global vegetable oil markets.
According to Reuters, the benchmark August 2026 CPO futures contract was holding at RM4,475 per ton by the midday trading break. Earlier in the session, the contract had fallen to as low as RM4,438 per ton before recovering part of its losses.
The cautious sentiment was also reflected in Indonesia’s domestic market. At PT Kharisma Pemasaran Bersama Nusantara (KPBN), the highest CPO offer price was recorded at IDR14,999/kg on Monday, resulting in a withdrawal (WD) during the trading session.
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The latest offer marked a decline of IDR451/kg, or approximately 2.92%, compared with Friday’s closing price of IDR15,450/kg.
Additional pressure came from China’s commodity markets. The most active soybean oil contract on the Dalian Commodity Exchange fell 0.44%, while palm oil futures on the same exchange declined by 1.51%. Meanwhile, soybean oil prices on the Chicago Board of Trade (CBOT) dropped 0.97%.
The weakness in competing vegetable oils added further pressure to the palm oil market, as soybean oil and palm oil continue to compete for demand in both the food and biofuel sectors.
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Crude oil prices also weighed heavily on market sentiment. Oil prices fell to their lowest level since March following signs of easing geopolitical tensions in the Middle East.
Statements from U.S. President Donald Trump and Iran’s Deputy Foreign Minister suggesting a preliminary agreement to end hostilities and reopen shipping routes through the Strait of Hormuz fueled expectations of more stable global energy supplies, putting downward pressure on crude oil prices.
For the palm oil industry, lower crude oil prices can reduce the attractiveness of palm-based biodiesel, potentially weakening demand from the renewable energy sector, one of the key growth drivers for global palm oil consumption.
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Amid these developments, market participants are also monitoring Malaysia’s export policy. The Malaysian Palm Oil Board (MPOB) maintained the reference CPO price for July 2026 at a level that keeps the country’s export duty at 10%.
Looking ahead, traders are expected to focus on import demand from major consuming countries, movements in competing vegetable oil markets, and broader energy market developments. Weak crude oil prices and continued corrections in vegetable oils are likely to remain key factors shaping palm oil market sentiment in the near term. (P3)
