PALMOILMAGAZINE, JAKARTA — Malaysian crude palm oil (CPO) futures extended their upward momentum on Monday (June 29), marking a second consecutive day of gains as stronger export performance and expectations surrounding Indonesia’s B50 biodiesel mandate continued to support market sentiment.
The benchmark September 2026 CPO contract on the Bursa Malaysia Derivatives Exchange settled RM21 higher, or 0.46%, at RM4,589 per metric ton, equivalent to approximately US$1,128.91 per ton.
Market sentiment was largely driven by improving export performance during June. Cargo surveyors reported that Malaysia’s palm oil product exports during the June 1–25 period increased by between 10.6% and 11.1% compared with the same period in the previous month. Market participants are now awaiting full-month export figures scheduled for release on Tuesday.
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Additional support came from Indonesia, where the mandatory B50 biodiesel program is set to begin on July 1, 2026. The policy is expected to increase domestic palm oil consumption and strengthen long-term demand prospects for the commodity.
In Indonesia’s domestic market, crude palm oil prices set by PT Kharisma Pemasaran Bersama Nusantara (KPBN) also moved higher. On Monday, KPBN established the CPO reference price at IDR 15,685 per kilogram.
The domestic price increased by IDR 110 per kilogram, or approximately 0.71%, compared with Friday’s trading level of IDR 15,575 per kilogram.
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The positive sentiment in the palm oil market was reinforced by gains in competing vegetable oils. On China’s Dalian Commodity Exchange, the most active soybean oil contract rose 0.65%, while palm oil futures gained 1.26%.
Meanwhile, soybean oil prices on the Chicago Board of Trade (CBOT) advanced 0.49%, providing additional support to global edible oil markets and strengthening palm oil prices.
Market analysts believe that stronger exports, expectations of higher biodiesel consumption in Indonesia, and gains across the broader vegetable oil complex could continue to support palm oil prices in the near term. However, traders remain focused on demand trends among major importing countries and developments in global crude oil markets, both of which continue to influence the energy and biofuel sectors. (P3)
