Indonesia’s KPBN CPO Auction Ends in Withdrawal as Malaysian Palm Oil Futures Decline

Palm Oil Magazine
Indonesia's KPBN palm oil auction ended in a withdrawal on Tuesday as domestic CPO prices declined, while Malaysian palm oil futures slipped on weaker soybean oil prices and expectations of higher production. Photo: Palmoilmagazine.com, assisted by AI

PALMOILMAGAZINE, JAKARTA – Indonesia’s crude palm oil (CPO) auction at PT Kharisma Pemasaran Bersama Nusantara (KPBN) ended in a withdrawal (WD) on Tuesday (June 30, 2026), with the highest bid reaching IDR 15,397 per kilogram. The price declined by IDR 288 per kilogram, or approximately 1.84%, from Monday’s highest bid of IDR 15,685 per kilogram.

According to KPBN auction data obtained by Palmoilmagazine.com, the Franco Dumai CPO auction opened at IDR 15,550 per kilogram but concluded with a withdrawal after the highest bid reached IDR 15,397 per kilogram.

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Meanwhile, CPO offered on an FOB Talang Duku basis opened at IDR 15,350 per kilogram and also ended in withdrawal, with the highest bid recorded at IDR 15,197 per kilogram. Franco Teluk Bayur CPO opened at IDR 15,420 per kilogram before closing in withdrawal with a highest bid of IDR 15,260 per kilogram.

Also Read: Indonesia Cuts July 2026 CPO Reference Price to USD 1,000.90 per Ton Amid Weak Global Demand

For downstream products, crude palm kernel oil (CPKO) at Franco Dumai opened at IDR 29,137 per kilogram but was withdrawn after attracting a highest bid of IDR 28,810 per kilogram. CPKO FOB Palembang also ended in withdrawal, opening at IDR 28,893 per kilogram with a highest bid of IDR 28,060 per kilogram.

Meanwhile, palm kernel (PK) at Franco Belawan was quoted at IDR 13,435 per kilogram.

In the international market, crude palm oil futures on the Bursa Malaysia Derivatives Exchange also traded lower on Tuesday, pressured by weaker soybean oil prices and expectations of stronger Malaysian palm oil production during the second half of the year.

Also Read: POSCO International Secures US$2 Billion in Global Bond Orders as Indonesian Palm Oil Business Attracts Investors

According to Reuters, the benchmark September 2026 CPO futures contract fell RM47, or 1.02%, to RM4,541 per metric ton (approximately USD1,116.55) during the midday trading session.

Despite the daily decline, the benchmark contract still posted a gain of around 1.1% for June, reversing losses recorded over the previous two months.

Market participants attributed the weakness primarily to declining soybean oil prices during the Asian trading session. At the same time, expectations of higher palm oil output in Malaysia over the coming months continued to weigh on market sentiment.

Also Read: Indonesia Launches B50 Biodiesel Mandate, Palm Oil Industry Set to Gain IDR24.68 Trillion in Added Value

Weakness was also evident across other vegetable oil markets. The most-active soybean oil contract on the Dalian Commodity Exchange slipped 0.11%, while the exchange’s palm oil contract fell 0.25%.

On the Chicago Board of Trade (CBOT), soybean oil futures declined 0.51%, reinforcing bearish sentiment across the global vegetable oil market amid expectations of improved supplies and evolving demand from major importing countries. (P3)


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