PALMOILMAGAZINE, JAKARTA – Domestic and international crude palm oil (CPO) markets moved in contrasting directions at the end of the week. While Indonesia’s CPO tender conducted by PT Kharisma Pemasaran Bersama Nusantara (KPBN) once again ended in withdrawal (WD), Malaysian palm oil futures posted solid gains amid concerns over global supply and escalating geopolitical tensions in the Middle East.
According to data obtained by Palmoilmagazine.com, the highest bid in Friday’s KPBN tender reached IDR 15,358 per kilogram, an increase of IDR 23 per kilogram, or approximately 0.15%, compared with IDR 15,335 per kilogram recorded in the previous trading session.
For the Franco Dumai contract, the opening offer was set at IDR 15,600 per kilogram. However, the tender was withdrawn after the highest bid reached only IDR 15,358 per kilogram. Similarly, the FOB Talang Duku contract opened at IDR 15,400 per kilogram but ended in withdrawal with a top bid of IDR 15,111 per kilogram.
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The Franco Teluk Bayur tender also failed to secure a transaction. The contract opened at IDR 15,470 per kilogram, while the highest offer stood at IDR 15,170 per kilogram.
In the downstream market, crude palm kernel oil (CPKO) trading showed stronger activity. The FOB Lampung CPKO contract was traded at IDR 24,147 per kilogram.
Meanwhile, palm kernel (PK) prices remained firm across several locations. The highest price was recorded at Rantau Dua Palm Oil Mill at IDR 11,640 per kilogram, followed by Solok Selatan at IDR 11,625 per kilogram, Bunut at IDR 11,510 per kilogram, and Pengabuan at IDR 11,460 per kilogram. The PK tender at Pelaihari was withdrawn after receiving a highest bid of IDR 8,000 per kilogram.
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While Indonesia’s domestic market continued to face withdrawal activity, Malaysia’s palm oil market ended the week on a positive note. Bernama reported that crude palm oil futures on Bursa Malaysia Derivatives closed higher on Friday, supported by concerns over tightening global vegetable oil supplies and rising geopolitical risks in the Middle East.
The July 2026 contract climbed RM84 to RM4,594 per tonne. August futures gained RM78 to RM4,622 per tonne, while the September contract rose RM73 to RM4,646 per tonne.
The rally extended into later delivery months. October futures advanced RM65 to RM4,668 per tonne, November contracts increased RM61 to RM4,689 per tonne, and December futures gained RM52 to close at RM4,710 per tonne.
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Market analysts attributed the gains to uncertainty surrounding global vegetable oil supplies and higher energy prices driven by geopolitical developments in the Middle East. These factors have strengthened expectations for palm oil demand, given its strategic role in both food and energy supply chains.
Despite higher prices, trading activity on Bursa Malaysia slowed. Daily volume declined to 76,763 lots from 91,261 lots in the previous session. However, investor confidence remained strong, as reflected by a rise in open interest to 287,112 contracts from 286,986 contracts.
In the physical market, Southern Malaysian June-delivery CPO prices also increased by RM50 to RM4,560 per tonne, indicating that bullish sentiment is spreading across both futures and physical markets.
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With Malaysian palm oil prices continuing to strengthen and domestic Indonesian tender prices edging higher, market participants will closely monitor global supply developments, energy markets, and geopolitical events that could shape palm oil price direction in the coming week. (P3)
