PALMOILMAGAZINE, JAKARTA – Malaysian crude palm oil (CPO) futures traded slightly lower on Thursday (July 2), as market participants remained cautious ahead of the upcoming monthly supply and demand report from the Malaysian Palm Oil Board (MPOB). Expectations of stronger palm oil production in Malaysia, combined with still-muted export performance, continued to weigh on market sentiment.
According to Reuters, the benchmark September 2026 CPO futures contract on the Bursa Malaysia Derivatives fell by RM10 per metric ton, or approximately 0.22%, to RM4,547 per metric ton (around USD1,113.91) during the midday trading session.
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Investors are largely adopting a wait-and-see approach ahead of the MPOB’s monthly report, scheduled for release on July 10, 2026. The report, which provides updated figures on Malaysia’s palm oil production, inventories, domestic consumption, and exports, is expected to serve as a key market indicator for short-term price direction.
Despite the softer performance in the Malaysian futures market, Indonesia’s domestic CPO market posted gains. Through the PT Kharisma Pemasaran Bersama Nusantara (KPBN) auction, CPO was priced at Rp15,545 per kilogram on Thursday, up Rp128 per kilogram, or about 0.83%, compared with the previous day’s highest bid of Rp15,417 per kilogram.
Meanwhile, global vegetable oil markets showed mixed performance. The most active soybean oil contract on the Dalian Commodity Exchange rose 0.48%, while palm oil futures on the same exchange declined 0.32%. In the United States, soybean oil futures on the Chicago Board of Trade (CBOT) also gained approximately 0.21%, reflecting continued mixed sentiment across the international edible oils market.
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Market participants are expected to closely monitor the upcoming MPOB data, as it will provide fresh insight into supply fundamentals and could influence palm oil price movements in the weeks ahead. (P3)
