PALMOILMAGAZINE, Kuala Lumpur, Malaysia — Malaysian crude palm oil (CPO) futures closed lower for a second consecutive trading session on Monday (August 3), as expectations of stronger July production and higher inventories continued to pressure the market. Robust export demand, however, helped limit the downside.
According to Reuters on Tuesday (August 4), the benchmark October 2026 CPO futures contract on the Bursa Malaysia Derivatives Exchange settled RM14 per metric ton, or 0.3%, lower at RM4,629 per metric ton. The contract had already declined 0.85% in the previous session as traders positioned ahead of Malaysia’s upcoming production and stock data.
Cargo surveyors estimated that Malaysia’s palm oil product exports increased by 12.1% to 19.5% in July from the previous month. A separate Reuters survey projected exports rose approximately 14.8%, indicating that overseas demand remained resilient.
Also Read: Malaysian Palm Oil Futures Rise on Stronger Export Outlook Despite Lower Trading Volume
Despite the stronger export performance, supply growth is expected to outpace demand. Reuters’ survey estimated Malaysia’s palm oil production increased by 7.4% in July, pushing inventories to their highest level in five months. The prospect of larger stockpiles has become the key bearish factor driving futures prices lower.
Pressure also came from broader vegetable oil markets. 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%, reinforcing weaker sentiment across the global edible oils complex.
Also Read: CPO Prices at KPBN Inacom Rise to IDR 15,650/kg Despite Weaker Malaysian Palm Oil Futures
In contrast, Indonesia’s domestic CPO market moved higher. According to tender results from PT Kharisma Pemasaran Bersama Nusantara (KPBN) Inacom, the Franco Dumai CPO price was set at IDR 15,650 per kilogram on Monday, up IDR 100 per kilogram, or 0.64%, from the highest offer recorded on Friday (July 31) at IDR 15,550 per kilogram.
The divergence highlights differing market dynamics, with Indonesia’s domestic prices supported by local supply-demand fundamentals, while international palm oil futures remain largely influenced by expectations of rising production, expanding inventories, and weakness across competing vegetable oil markets. (P3)
