PALMOILMAGAZINE, JAKARTA – Malaysian crude palm oil (CPO) futures closed lower for a second consecutive trading session on Thursday (July 16, 2026), as declining global vegetable oil prices and a stronger Malaysian ringgit continued to pressure the market.
According to Reuters, the benchmark October 2026 CPO contract on the Bursa Malaysia Derivatives Exchange (BMD) fell by RM42, or 0.52%, to settle at RM4,577 per metric ton (approximately US$1,124.29) during afternoon trading.
Market sentiment remained bearish after soybean oil futures on the Chicago Board of Trade (CBOT) and vegetable oil contracts on China’s Dalian Commodity Exchange both weakened. At the same time, the appreciation of the Malaysian ringgit reduced the competitiveness of the country’s palm oil exports by making them more expensive for overseas buyers.
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While international prices softened, Indonesia’s domestic palm oil market moved in the opposite direction.
Data obtained by Palmoilmagazine.com from PT Kharisma Pemasaran Bersama Nusantara (KPBN) showed that the CPO tender price on Thursday reached IDR 15,650 per kilogram, an increase of IDR 61/kg, or 0.39%, from Wednesday’s highest offer of IDR 15,589/kg.
The divergence between Malaysia’s futures market and Indonesia’s domestic tender prices suggests that local demand continues to provide support for the domestic market, despite persistent headwinds from weaker global vegetable oil prices and currency movements.
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The contrasting performance underscores the difference in market sentiment between international palm oil trading and Indonesia’s domestic CPO market, where demand remains relatively resilient even as global conditions stay under pressure. (P3)
