Benchmark palm oil futures snapped a two-session losing streak on Tuesday, supported by gains in rival vegetable oils and firmer crude oil prices, while Indonesia’s domestic CPO market also posted higher prices.
PALMOILMAGAZINE, Kuala Lumpur, Malaysia — Malaysian crude palm oil (CPO) futures rebounded on Tuesday (Aug. 4), ending a two-session decline as stronger rival vegetable oil prices and recovering crude oil values improved market sentiment and reinforced expectations for biodiesel demand.
According to Reuters, the benchmark October 2026 CPO contract on the Bursa Malaysia Derivatives Exchange (BMD) gained RM31 per metric ton, or 0.67%, to RM4,660 per metric ton in early trading. The advance marked a return of buying interest after two consecutive sessions of losses.
Also Read: Malaysian Palm Oil Futures Extend Losses as Rising Output Weighs on Market
The recovery was underpinned by gains across the broader vegetable oil market. The most-active soyoil contract on China’s Dalian Commodity Exchange (DCE) rose 0.62%, while the exchange’s palm oil contract added 0.41%. Meanwhile, soyoil futures on the Chicago Board of Trade (CBOT) edged 0.09% higher, lending further support to palm oil prices.
Crude oil prices also strengthened, improving the outlook for biofuel demand. Because palm oil is a key feedstock for biodiesel production, higher energy prices generally enhance the competitiveness of vegetable oils and provide additional support for CPO futures.
Also Read: Indonesia’s KPBN Inacom CPO Price Rises to IDR 15,800/kg as Malaysian Palm Oil Futures Rebound
The stronger global market was reflected in Indonesia’s physical palm oil trade. Tender results from PT Kharisma Pemasaran Bersama Nusantara (KPBN) Inacom showed the Franco Dumai CPO reference price was set at IDR 15,800 per kilogram on Tuesday, up IDR150 per kilogram, or 0.96%, from IDR15,650 per kilogram a day earlier.
Market participants are now awaiting fresh supply-and-demand signals, including production and export data from major Southeast Asian producers, while keeping a close watch on movements in crude oil and competing vegetable oils for clues on the market’s near-term direction. (P3)
