PALMOILMAGAZINE, JAKARTA – Crude palm oil (CPO) futures on the Bursa Malaysia Derivatives Exchange traded within a narrow range on Tuesday (July 7, 2026), easing slightly after posting gains in the previous session. The market remained supported by rising prices of competing vegetable oils and concerns that the El Niño weather pattern could disrupt palm oil production, although a stronger Malaysian ringgit limited further upside.
According to Reuters, the benchmark September 2026 CPO futures contract slipped RM1 per tonne, or about 0.02%, to close at RM4,549 per tonne. The modest decline reflected a balance between supportive external market fundamentals and currency pressures, as the firmer ringgit reduced the competitiveness of Malaysian palm oil exports.
In Indonesia, domestic CPO prices marketed through PT Kharisma Pemasaran Bersama Nusantara (KPBN) ended in withdrawal (WD) despite recording higher offers. The highest bid reached Rp15,488 per kilogram, up Rp126 per kilogram, or approximately 0.82%, from Rp15,362 per kilogram recorded on Monday (July 6).
Additional support came from the broader vegetable oil market. On China’s Dalian Commodity Exchange, the most-active soyoil contract advanced 1.31%, while the benchmark palm oil contract climbed 1.53%, reflecting stronger demand sentiment across edible oils.
Meanwhile, in the United States, Chicago Board of Trade (CBOT) soyoil futures rose 0.14%, reinforcing optimism across global vegetable oil markets.
Also Read: Indonesia Sets July 2026 Biodiesel Market Index Price at IDR 14,562 per Liter
Market participants are expected to keep a close watch on weather developments in major palm oil-producing regions, particularly the potential impact of El Niño on crop yields. Currency movements and trends in competing vegetable oils are also likely to remain key drivers of CPO prices in the near term. (P3)
