PALMOILMAGAZINE, JAKARTA – Crude palm oil (CPO) prices retreated in both the global and Indonesian markets on Monday (July 27, 2026), following a strong rally that pushed Malaysia’s benchmark futures to a 15-week high in the previous session. The decline was mirrored in Indonesia’s physical market, where prices at PT Kharisma Pemasaran Bersama Nusantara (KPBN) also edged lower.
According to Reuters, the benchmark October 2026 CPO futures contract on the Bursa Malaysia Derivatives Exchange fell RM39 per metric ton, or 0.83%, to RM4,683 per metric ton (approximately US$1,147.79) during early trading.
The market came under pressure from weaker prices of competing vegetable oils, particularly soybean oil, as well as declining crude oil prices. Lower energy prices reduced palm oil’s appeal as a biodiesel feedstock, weighing on overall market sentiment.
Also Read: Malaysia CPO Futures Extend Weekly Gains on Tighter Supply Expectations
In Indonesia, CPO prices traded through PT Kharisma Pemasaran Bersama Nusantara (KPBN) also softened. During Monday’s tender, all offers were withdrawn (WD), with the highest bid reaching IDR 15,677 per kilogram.
Compared with the previous trading session on Friday (July 24, 2026), when the highest offer stood at IDR 15,768 per kilogram, the KPBN CPO price declined by IDR 91 per kilogram, representing a 0.58% decrease.
Also Read: KPBN CPO Tender Withdraws at IDR 15,768/Kg, Malaysia Palm Oil Futures Reach 15-Week High
Despite the correction, CPO prices remain at relatively elevated levels compared with recent weeks. Market participants are now closely monitoring movements in global vegetable oil markets, energy prices, and demand from key importing countries, all of which are expected to shape the near-term direction of palm oil prices. (P3)
