Benchmark CPO futures came under pressure from expectations of higher Malaysian inventories, although the benchmark contract still posted a weekly gain amid relatively strong global demand.
PALMOILMAGAZINE, JAKARTA — Malaysian palm oil futures fell on Friday (Aug. 7, 2026), pressured by expectations of higher inventories in Malaysia and slower export demand. Despite the daily decline, the benchmark contract still posted a weekly gain.
According to Reuters, the benchmark October 2026 crude palm oil (CPO) contract on Bursa Malaysia Derivatives fell RM8 per metric ton, or about 0.17%, to RM4,678 per ton.
The contract nevertheless gained 0.75% over the week, marking its fourth weekly increase in the past five weeks.
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Downward pressure emerged after a Reuters survey projected Malaysian palm oil inventories in July to rise to their highest level in five months.
The increase is expected to reflect production growth outpacing demand. However, relatively strong global palm oil consumption continues to provide some support to prices.
Market participants are now awaiting official Malaysian palm oil production, inventory and demand data from the Malaysian Palm Oil Board (MPOB), scheduled for release on Aug. 10.
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The data will provide a clearer indication of the balance between supply and demand in Malaysia’s palm oil market and could offer fresh direction for CPO prices.
On the same day, cargo surveyors are also expected to release estimates of Malaysian palm oil exports for Aug. 1–10. Export data could become an important short-term catalyst for palm oil prices.
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Indonesia’s KPBN CPO Price Declines
In Indonesia’s domestic market, CPO traded through PT Kharisma Pemasaran Bersama Nusantara (KPBN) recorded a withdrawal (WD) on Friday (Aug. 7).
The highest CPO bid was IDR15,607 per kg, down IDR43 per kg, or around 0.27%, from the highest bid of IDR15,650 per kg recorded on Thursday (Aug. 6).
The decline in the KPBN CPO bid came amid weaker global palm oil prices, although domestic trading mechanisms and price-forming factors differ from those on Bursa Malaysia.
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Vegetable Oils Trade Mixed
Global vegetable oil markets moved in different directions.
The most-active soybean oil contract on the Dalian Commodity Exchange rose 0.27%, while the palm oil contract on the same exchange fell 0.3%.
On the Chicago Board of Trade (CBOT), soybean oil prices gained around 0.25%.
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The mixed performance highlights the influence of supply and demand dynamics as well as price relationships between palm oil and competing vegetable oils.
In the near term, traders will closely monitor MPOB data and Malaysia’s export performance to assess whether stronger production will add further pressure to CPO prices or be offset by resilient global demand. (P3)
