PALMOILMAGAZINE, Jakarta, Indonesia — Indonesia’s domestic crude palm oil (CPO) prices traded through PT Kharisma Pemasaran Bersama Nusantara (KPBN) edged higher on Monday (August 3), even as benchmark palm oil futures in Malaysia extended losses amid expectations of stronger production.
According to KPBN Inacom tender results obtained by PalmOilMagazine, the Franco Dumai CPO price was set at IDR 15,650 per kg, up IDR 100 per kg, or approximately 0.64%, from the highest offer recorded on Friday (July 31) at IDR 15,550 per kg.
Other domestic quotations included FOB Talang Duku at IDR 15,400 per kg, Franco Teluk Bayur at IDR 15,450 per kg, FOB Boom Baru, Palembang at IDR 15,425 per kg, and Loco PKS Parindu & Ngabang at IDR 15,300 per kg.
Also Read: KPBN CPO Tender Ends in Withdrawal as Malaysian Palm Oil Futures Extend Weekly Losses
Meanwhile, the benchmark CPO futures contract on the Bursa Malaysia Derivatives Exchange closed lower for a second consecutive session, pressured by expectations of higher Malaysian palm oil production in July, although resilient export demand helped limit the decline.
According to Reuters on Tuesday (August 4), the benchmark October 2026 CPO futures contract settled RM14 per metric ton, or about 0.3%, lower at RM4,629 per metric ton, following a 0.85% decline in the previous trading session.
Cargo surveyors estimated that Malaysia’s palm oil product exports increased between 12.1% and 19.5% in July compared with June. A Reuters survey also projected that the country’s palm oil exports rose approximately 14.8% during the month.
Also Read: Indonesia Cuts August CPO Reference Price to USD 996.52/MT as Export Charges Adjust
At the same time, Malaysian palm oil production is estimated to have climbed 7.4% in July, lifting inventories to their highest level in five months. The prospect of expanding output and rising stockpiles remained the primary factor weighing on futures prices.
Broader weakness across the global vegetable oils market also added pressure. The most-active soybean oil contract on China’s Dalian Commodity Exchange slipped 0.11%, while Dalian palm oil futures fell 0.88%. In the United States, soybean oil futures on the Chicago Board of Trade (CBOT) eased 0.21%, reflecting continued bearish sentiment across international edible oil markets. (P3)
