Malaysian palm oil futures extended gains amid stronger global vegetable oil and crude oil prices, while Indonesia’s KPBN CPO price also rose to IDR 15,835 per kg.
PALMOILMAGAZINE, JAKARTA — Malaysian crude palm oil (CPO) futures extended their gains and remained above MYR 4,800 per tonne, reaching their highest level since early April as global vegetable oil prices strengthened.
According to Trading Economics, gains in vegetable oil prices on the Dalian Commodity Exchange and in the Chicago market provided key support for CPO prices. Higher global crude oil prices also added to the positive sentiment surrounding the palm oil market.
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Energy markets have drawn increased attention as prospects for an agreement to end the conflict in the Middle East appear to have weakened. The situation has raised concerns over potential disruptions to energy supplies and their impact on crude oil prices.
Movements in crude oil prices can also influence vegetable oil markets, particularly because palm oil is closely linked to the energy sector through its use as a feedstock for biodiesel.
However, the strengthening Malaysian ringgit limited further gains in CPO prices. A stronger ringgit can make Malaysian palm oil more expensive for buyers using foreign currencies, potentially weighing on the competitiveness of Malaysian exports.
Also Read: KPBN Inacom CPO Price Rises to IDR 15,835/kg as Malaysian Palm Oil Futures Strengthen
In Indonesia, CPO prices traded through PT Kharisma Pemasaran Bersama Nusantara (KPBN) also strengthened.
KPBN set its CPO price at IDR 15,835/kg on Tuesday, August 18, 2026, up IDR 135/kg, or approximately 0.86%, from IDR 15,700/kg recorded in the previous trading session on Friday, August 14.
The increase in Indonesia’s domestic CPO price was in line with stronger global palm oil prices. However, the market’s next direction will continue to depend on developments in global vegetable oil and crude oil prices, the Malaysian ringgit and palm oil export demand from Malaysia. (P3)
