PALMOILMAGAZINE, JAKARTA – Malaysian crude palm oil (CPO) futures climbed to their highest level in 15 weeks on Friday (July 24, 2026), supported by a rally in global energy prices, stronger edible oil futures on China’s Dalian Commodity Exchange, and expectations of tighter Indonesian export supplies following the implementation of the country’s mandatory B50 biodiesel program.
According to Reuters, the benchmark October 2026 CPO contract on the Bursa Malaysia Derivatives Exchange gained RM41 per metric ton, or approximately 0.87%, to RM4,751 per metric ton during midday trading. The contract has risen about 3.35% for the week, extending its winning streak to a third consecutive week.
The market was also buoyed by higher crude oil prices, which improve the competitiveness of palm oil-based biodiesel relative to conventional fossil fuels. Stronger energy markets are expected to support global demand for palm oil, particularly from the biofuel sector.
Also Read: Indonesia Sees B50 Biodiesel as Catalyst for Higher Palm Oil Productivity
Across the broader vegetable oil market, the most-active soybean oil contract on China’s Dalian Commodity Exchange advanced 0.88%, while Dalian palm oil futures climbed 1.33%. In contrast, soybean oil futures on the Chicago Board of Trade (CBOT) slipped 0.23%, although the decline did little to dampen the bullish sentiment in the palm oil market.
Meanwhile, Indonesia’s domestic CPO market showed a modest decline. At the tender conducted by PT Kharisma Pemasaran Bersama Nusantara (KPBN), the highest offer was recorded at IDR 15,768 per kilogram on Friday (July 24, 2026). The tender was declared withdrawn, with the offered price down IDR 32 per kilogram, or approximately 0.20%, from IDR 15,800 per kilogram on Thursday.
Despite the slight correction in Indonesia’s domestic CPO tender prices, global market sentiment remained constructive. Market participants believe Indonesia’s mandatory B50 biodiesel policy will increase domestic palm oil consumption, reducing export availability and tightening global supply.
Also Read: Indonesia, Malaysia, Thailand Reach Landmark Agreement on Regional Sustainable Palm Oil Cooperation
Looking ahead, analysts expect the combination of firm energy prices, gains in competing vegetable oils across Asia, and expectations of tighter export supplies to continue supporting CPO prices in the near term. However, traders will closely monitor production trends in major producing countries, as well as demand developments in India and China, the world’s two largest palm oil importers. (P3)
