Weaker competing vegetable oils and lower crude oil prices weighed on regional palm oil sentiment, while Indonesia’s domestic CPO tender closed without a successful transaction.
PALMOILMAGAZINE, Jakarta, Indonesia — Malaysian Crude Palm Oil (CPO) futures closed lower on Friday, July 31, pressured by weaker prices for competing vegetable oils and declining crude oil, although the benchmark contract remained on track to post its second consecutive monthly gain.
According to Reuters, the benchmark October 2026 CPO contract on the Bursa Malaysia Derivatives (BMD) fell RM23 per metric ton, or 0.49%, to RM4,660 (US$1,141) per metric ton in early trading.
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The benchmark contract has declined 1.08% this week after recording gains over the previous three consecutive weeks. On a monthly basis, however, palm oil futures remained 2.46% higher, extending their positive momentum for a second straight month.
The weaker regional sentiment was also reflected in Indonesia’s domestic market. The PT Kharisma Pemasaran Bersama Nusantara (KPBN Inacom) CPO tender ended in withdrawal (WD) on Friday after the highest bid reached only IDR 15,550 per kilogram, down IDR 200/kg, or 1.27%, from the previous session’s highest price of IDR 15,750/kg on July 30.
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The decline in Malaysian futures and the withdrawal of Indonesia’s domestic CPO tender suggest that market participants remain cautious amid pressure from global vegetable oil markets and fluctuations in energy prices, both of which continue to influence sentiment in the international palm oil trade. (P3)
