November CPO futures on Bursa Malaysia fell 1.88% to RM4,853 per metric ton, while KPBN’s highest bid dropped 1.54% to IDR 15,600/kg.
PALMOILMAGAZINE, JAKARTA — Crude palm oil (CPO) prices weakened again in Bursa Malaysia Derivatives futures trading on Wednesday (Aug. 26, 2026). The decline extended the correction into a second consecutive session after the previous rally made palm oil increasingly less competitive against rival vegetable oils, particularly soybean oil.
According to Reuters, the benchmark CPO futures contract for November 2026 delivery closed RM93 per metric ton, or 1.88%, lower at RM4,853 per metric ton. The decline followed a 1.43% drop in the previous session.
The main pressure on prices came from concerns over CPO’s competitiveness. The sharp price gains recorded in recent weeks have widened the price gap between palm oil and soybean oil, potentially prompting buyers to switch to more competitively priced alternative vegetable oils.
Also Read: Malaysia CPO Prices Weaken, September Contract Falls to RM4,720 per Ton
The market is also closely monitoring Malaysia’s palm oil exports, which have yet to show significant improvement. Cargo survey estimates indicate that Malaysian palm oil product exports during Aug. 1–25 were expected to decline by between 11.4% and 20% from the previous period.
The decline in exports has raised concerns over a potential increase in Malaysian palm oil inventories. The risk is becoming more significant as production is expected to enter its seasonal peak in September and October.
Before entering the current correction, CPO prices on Bursa Malaysia had rallied for five consecutive trading sessions through Aug. 21. During that period, CPO prices climbed around 6.54% and closed above the RM5,000-per-metric-ton level for the first time since December 2024.
However, the price surge is now becoming a challenge for demand. As CPO becomes more expensive relative to soybean oil, buyers could reduce their palm oil purchases and increase their use of competing vegetable oils.
Also Read: CPO Prices Under Pressure as KPBN Tender Withdraws, Malaysia Futures Fall
KPBN CPO Prices Also Under Pressure
The price weakness was also reflected in Indonesia’s domestic CPO market through the tender conducted by PT Kharisma Pemasaran Bersama Nusantara (KPBN).
On Wednesday (Aug. 26, 2026), the KPBN CPO tender ended in a withdraw (WD), with the highest bid at IDR 15,600/kg. The price was down IDR 244/kg, or around 1.54%, from the highest bid of IDR 15,844/kg recorded on Monday (Aug. 24, 2026).
Based on KPBN information obtained by Agricom, the CPO Franco Dumai price opened at IDR 15,850/kg. However, the tender ended in a withdraw, with the highest bid at IDR 15,600/kg.
Meanwhile, the CPO price for FOB Talang Duku opened at IDR 15,600/kg but also ended in a withdraw, with the highest bid at IDR 15,309/kg.
The price movements on Bursa Malaysia and at KPBN indicate that the CPO market is beginning to face pressure following its recent extended rally. In addition to concerns that higher prices could undermine palm oil’s competitiveness against soybean oil, market attention is now focused on export developments and the potential buildup of Malaysian inventories as the country enters its peak production period. (A3)
