PALMOILMAGAZINE, JAKARTA – Malaysian crude palm oil (CPO) futures traded largely unchanged on Thursday (July 9), as gains in Dalian vegetable oils and stronger crude oil prices offset weakness in soybean oil futures on the Chicago Board of Trade (CBOT).
According to Reuters, the benchmark September 2026 CPO contract on the Bursa Malaysia Derivatives Exchange edged up RM6 per metric ton, or 0.13%, to RM4,615 per metric ton in early trade. The muted price movement reflected a market balancing mixed signals from global vegetable oil markets.
In Indonesia, domestic CPO prices also extended their upward trend. At the PT Kharisma Pemasaran Bersama Nusantara (KPBN) tender on Thursday, CPO was priced at Rp15,600 per kilogram, up Rp11/kg, or approximately 0.07%, from Wednesday’s highest offer of Rp15,589/kg.
Also Read: Prabowo Launches B50 Biodiesel, Declares Indonesia First Nation to Mandate 50% Palm-Based Fuel Blend
Market sentiment also received a boost after President Prabowo Subianto officially launched Indonesia’s B50 Biodiesel Program in Karawang, West Java, on the same day. The initiative makes Indonesia the first country in the world to implement a mandatory biodiesel blend containing 50% palm oil-based fuel, reinforcing the country’s commitment to energy security and greater domestic utilization of palm oil.
Energy and Mineral Resources Minister Bahlil Lahadalia said the B50 mandate is expected to increase Indonesia’s annual domestic CPO consumption to between 16.3 million and 17 million metric tons, significantly expanding demand for palm oil while reducing the country’s reliance on imported diesel fuel.
The government also estimates that the policy could generate approximately Rp170 trillion in foreign exchange savings through lower fuel imports, while expanding the domestic palm oil market and providing more stable demand for millions of Indonesian oil palm smallholders.
Also Read: Bahlil: B50 Biodiesel Will Drive Palm Oil Demand and Bolster Energy Independence
The combination of resilient global palm oil prices, firmer domestic CPO values, and the launch of the B50 program has strengthened optimism over Indonesia’s palm oil sector, with market participants expecting the biodiesel mandate to provide long-term support for domestic CPO demand. (P3)
