PALMOILMAGAZINE, JAKARTA – Malaysian crude palm oil (CPO) futures retreated on Tuesday, June 23, 2026, after reaching their highest level in approximately six weeks, as declining soybean oil prices and a stronger ringgit weighed on market sentiment.
According to Reuters, the benchmark September 2026 CPO contract on the Bursa Malaysia Derivatives Exchange fell RM33 per ton, or approximately 0.71 percent, to RM4,639 per ton during the midday trading session. The decline interrupted a two-session rally that had lifted prices to their highest level in about one and a half months.
Market participants attributed the weakness primarily to declines in competing vegetable oils. Soybean oil futures on the Chicago Board of Trade (CBOT) fell around 0.49 percent, while the most active soybean oil contract on China’s Dalian Commodity Exchange declined 0.29 percent.
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At the same time, Dalian palm oil futures also slipped by 0.34 percent, indicating broader weakness across the global vegetable oil market.
In addition to external market pressures, the strengthening Malaysian ringgit against the U.S. dollar reduced the competitiveness of Malaysian palm oil exports. A firmer ringgit makes palm oil more expensive for overseas buyers using other currencies, potentially limiting export demand.
Despite the price correction, export performance continued to provide support to the market. Cargo surveyor Intertek Testing Services (ITS) reported that Malaysian palm product exports during the June 1–20 period rose 19.1 percent compared with the corresponding period of the previous month.
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Meanwhile, independent inspection company AmSpec Agri Malaysia recorded an even stronger increase, reporting a 25 percent month-on-month rise in exports during the same period. The stronger shipment figures suggest that international demand for Malaysian palm oil remains resilient despite ongoing price volatility.
In Indonesia, crude palm oil tenders conducted by PT Kharisma Pemasaran Bersama Nusantara (KPBN) again ended in withdrawal on Tuesday. The highest CPO offer was recorded at IDR15,315 per kilogram.
The latest offer price declined by IDR100 per kilogram, or approximately 0.65 percent, compared with Monday’s highest offer of IDR15,415 per kilogram.
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Market participants are now closely monitoring developments in global vegetable oil prices, currency movements, and export trends as key indicators for short-term CPO price direction. Although prices corrected during the latest trading session, strong export demand and the prospect of tighter regional supplies are expected to continue providing underlying support to the palm oil market in the coming weeks. (P3)
