PALMOILMAGAZINE, JAKARTA – Malaysian crude palm oil (CPO) futures extended their decline on Thursday (June 18, 2026), pressured by falling crude oil prices and weakness across competing vegetable oil markets. Despite the softer global outlook, Indonesia’s domestic palm oil market posted gains, reflecting robust local demand.
At midday trading on the Bursa Malaysia Derivatives Exchange (BMD), the benchmark September 2026 CPO contract fell RM33 per tonne, or approximately 0.72%, to RM4,541 per tonne. The decline mirrored broader weakness across global commodity markets, particularly in the energy and vegetable oil sectors.
Lower crude oil prices weighed on palm oil sentiment by reducing the attractiveness of palm-based biodiesel relative to fossil fuels. At the same time, declines in rival edible oils added further pressure to the market, limiting buying interest in palm oil futures.
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While international prices softened, Indonesia’s domestic market moved in the opposite direction. Crude palm oil traded through PT Kharisma Pemasaran Bersama Nusantara (KPBN) was priced at IDR 15,335 per kilogram on Thursday.
The price represented an increase of IDR 185/kg, or approximately 1.22%, from Wednesday’s highest offer price of IDR 15,150/kg. The gain suggests that domestic demand remains supportive despite ongoing volatility in global markets.
Bearish sentiment was also evident in China’s commodity markets. The most-active soybean oil contract on the Dalian Commodity Exchange fell 0.47%, while palm oil futures on the same exchange declined 0.99%.
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In the United States, soybean oil futures on the Chicago Board of Trade (CBOT) dropped 0.92%. Weakness in soybean oil markets in both China and the U.S. added pressure to palm oil prices, as the products compete directly within the global vegetable oil industry.
Market participants are closely monitoring developments in global energy prices, biodiesel policies among major producing countries, and import demand from key consuming nations such as India and China. These factors are expected to play a significant role in shaping short-term palm oil price movements.
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Although global markets continue to face external headwinds, the increase in Indonesia’s domestic CPO price highlights the strength of underlying demand fundamentals, helping support the country’s palm oil sector amid ongoing international market volatility. (P3)
