PALMOILMAGAZINE, JAKARTA – Malaysian crude palm oil (CPO) futures extended their decline on Tuesday (June 30, 2026), pressured by weaker soybean oil prices and expectations of stronger palm oil production in the second half of the year.
On the Bursa Malaysia Derivatives Exchange, the benchmark September 2026 CPO contract fell RM47 per metric ton, 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 recorded a monthly gain of around 1.1% in June, reversing two consecutive months of losses.
Also Read: Indonesia Cuts July 2026 CPO Reference Price to USD 1,000.90 per Ton Amid Weak Global Demand
Market participants attributed the weakness primarily to declining soybean oil prices during Asian trading hours. At the same time, expectations of rising Malaysian palm oil production over the coming months continued to limit bullish sentiment in the market.
The softer global market was also reflected in Indonesia’s domestic CPO auction. At PT Kharisma Pemasaran Bersama Nusantara (KPBN), the Tuesday auction ended in a withdrawal (WD), with the highest bid recorded at IDR15,397 per kilogram.
The highest bid was down IDR288 per kilogram, or approximately 1.84%, from Monday’s highest bid of IDR15,685 per kilogram.
Weakness also spread across other vegetable oil markets. The most-active soybean oil contract on the Dalian Commodity Exchange declined 0.11%, while the exchange’s palm oil contract slipped 0.25%.
Meanwhile, soybean oil futures on the Chicago Board of Trade (CBOT) fell 0.51%, underscoring continued weakness across the global vegetable oil complex.
Market analysts expect short-term palm oil prices to remain influenced by Malaysian production trends, demand from major importing countries, and price movements in competing vegetable oils—particularly soybean oil, which remains one of the key benchmarks for the global palm oil market. (P3)
