PALMOILMAGAZINE, JAKARTA – Crude palm oil (CPO) prices continued their downward trend on Friday (July 3, 2026), as market sentiment remained weighed down by expectations of stronger production and a potential increase in inventories, extending the commodity’s weekly losses.
According to Reuters, the benchmark September 2026 CPO futures contract on the Bursa Malaysia Derivatives Exchange fell by RM7 per metric ton, or 0.16%, to RM4,499 per metric ton during the midday trading session. The decline brought the benchmark contract’s weekly loss to approximately 1.4%, reflecting persistent bearish sentiment across the market.
Indonesia’s domestic market followed the same direction. The CPO reference price set by PT Kharisma Pemasaran Bersama Nusantara (KPBN) was IDR 15,485 per kilogram on Friday, down IDR 60 per kilogram, or 0.39%, from IDR 15,545 per kilogram recorded on Thursday (July 2).
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The synchronized decline in both Malaysian futures and Indonesia’s domestic reference price underscores the continued influence of global fundamentals on palm oil markets. Traders have become increasingly cautious as expectations grow for higher output from major producing countries, raising concerns that inventories could expand in the coming months.
Pressure also came from the broader vegetable oil complex. On China’s Dalian Commodity Exchange, the most active soybean oil contract slipped about 0.2%, while the benchmark palm oil contract dropped a steeper 0.95%.
The weakness across competing vegetable oils suggests that bearish sentiment remains widespread, with investors closely monitoring demand prospects in key importing markets.
Meanwhile, trading on the Chicago Board of Trade (CBOT) was suspended on Friday due to the U.S. Independence Day holiday, leaving global vegetable oil markets without direction from the U.S. benchmark.
Market participants are now awaiting fresh fundamental data, particularly Malaysia’s upcoming production, export, and inventory figures, which are expected to provide clearer direction for palm oil prices in the week ahead. Developments in demand from major importers such as India and China will also remain closely watched, as they are expected to play a crucial role in shaping the global supply-demand balance. (P3)
