PALMOILMAGAZINE, JAKARTA – Malaysian crude palm oil (CPO) futures extended their gains on Wednesday (July 8), closing at their highest level in two weeks as stronger competing vegetable oil prices and a rally in crude oil lifted market sentiment amid escalating geopolitical tensions between the United States and Iran.
According to Reuters, the benchmark September 2026 CPO contract on the Bursa Malaysia Derivatives Exchange rose RM61 per metric ton, or 1.34%, to settle at RM4,608 per metric ton, its highest closing level since June 24, 2026.
The strength in the Malaysian market was mirrored in Indonesia, where crude palm oil prices at PT Kharisma Pemasaran Bersama Nusantara (KPBN) also moved higher. During Wednesday’s tender, the auction ended in withdraw (WD), with the highest offer reaching Rp15,589 per kilogram, up Rp101/kg from Tuesday’s highest bid of Rp15,488/kg.
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Palm oil prices were supported by gains across the global vegetable oils market. The most-active soybean oil contract on China’s Dalian Commodity Exchange advanced 0.61%, while palm oil futures on the exchange climbed 0.38%. Meanwhile, soybean oil futures on the Chicago Board of Trade (CBOT) surged 2.19%, improving palm oil’s competitiveness as an alternative edible oil.
Market participants also began position squaring ahead of the release of the Malaysian Palm Oil Board (MPOB) monthly report on production, inventories, and exports. The report is expected to provide fresh direction for palm oil prices in the coming days.
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Analysts said CPO prices could extend their rally if the MPOB data shows inventories or production declining more than market expectations. Conversely, a larger-than-expected increase in supply could trigger profit-taking and weigh on prices. (P3)
