Concerns over the potential impact of El Niño on palm oil production in Malaysia and Indonesia helped lift Malaysian CPO futures, despite weakness in competing vegetable oils.
PALMOILMAGAZINE, JAKARTA — Malaysian crude palm oil (CPO) futures on Bursa Malaysia Derivatives advanced on Friday, September 4, 2026, with the benchmark contract posting a weekly gain as concerns over the potential impact of El Niño on palm oil production supported the market.
According to Reuters, the most-active CPO futures contract for November 2026 delivery rose RM27 per ton, or 0.55%, to RM4,931 per ton at the close.
Also Read: Malaysia CPO Futures Fall on September 3, KPBN Inacom Price Rises to IDR 16,098
The November contract gained approximately 0.76% over the week, recovering part of the losses recorded during the previous trading week.
Weather concerns, particularly the potential impact of El Niño, remained a key factor supporting palm oil prices. The weather phenomenon could affect production in Malaysia and Indonesia, the world’s two largest palm oil-producing countries.
The gains in Malaysian CPO futures came despite declines in several competing vegetable oil markets.
Also Read: KPBN Inacom CPO Price Falls Friday, September 4, to IDR 16,025, CIF Rotterdam Drops to US$1,585
On the Dalian Commodity Exchange, the most-active soybean oil contract fell 0.19%, while the most-active palm oil contract declined 0.39%. Soybean oil futures on the Chicago Board of Trade (CBOT) also slipped 0.46%.
Indonesia’s KPBN CPO Price Moves Lower
Meanwhile, Indonesia’s domestic CPO market moved in the opposite direction.
In its Friday, September 4, 2026 tender, PT Kharisma Pemasaran Bersama Nusantara (KPBN) Inacom set the CPO price at IDR 16,025 per kg, down IDR 73 per kg, or around 0.45%, from IDR 16,098 per kg recorded on Thursday, September 3.
Also Read: Indonesia Raises September CPO Reference Price 1.10% to US$1,007.51/MT
The contrasting movements underline the fact that domestic CPO prices and regional futures markets do not necessarily move in tandem on a daily basis. Price movements are influenced by a combination of supply and demand conditions, currency movements, and developments in global vegetable oil markets. (A3)
