Malaysia’s December 2026 CPO futures contract fell RM58 per ton after reaching its highest level since December 2024, while weaker September exports and expectations for stocks near 3 million tons weighed on the market.
PALMOILMAGAZINE, JAKARTA — Malaysian palm oil futures fell more than 1% on Thursday, Sept. 17, 2026, retreating after the benchmark contract had earlier reached its highest level in about 21 months.
The decline was driven by expectations of higher September stocks, still-weak exports and losses in competing vegetable oils, according to Reuters.
Also Read: Malaysia CPO Futures Rise 0.95% on Tuesday, KPBN Price at IDR 15,702/kg
The December 2026 crude palm oil (CPO) contract on Bursa Malaysia Derivatives Exchange closed RM58, or 1.16%, lower at RM4,940 per ton, equivalent to about US$1,206.05 per ton.
The contract had reached its highest level since December 2024 in the previous session before market attention shifted back to supply and demand fundamentals.
Malaysian Exports Remain Weak
One of the main pressures on the market came from Malaysia’s export performance.
Estimates from several cargo surveyors indicated that Malaysian palm oil product exports during Sept. 1–15, 2026, were expected to fall between 17.8% and 25.6% from the corresponding period in August.
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Slower shipments have raised concerns among market participants because Malaysia is one of the world’s major palm oil suppliers. If exports weaken while production remains firm, domestic inventories could increase.
Market participants are also watching expectations that Malaysian palm oil stocks could approach 3 million tons by the end of September.
The prospect of higher inventories could limit further gains in CPO prices, particularly after futures prices had climbed to their highest level in more than a year and a half.
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Competing Vegetable Oils Weaken
Global vegetable oil markets also weighed on palm oil futures.
On the Dalian Commodity Exchange, the most-active soybean oil contract fell 0.34%, while the most-active palm oil contract declined 1.06%. Soybean oil prices on the Chicago Board of Trade fell 1.02%.
Palm oil competes with soybean oil and other vegetable oils in food, industrial and energy markets. Movements in competing oils can therefore influence the relative attractiveness of palm oil and shape market sentiment toward CPO.
Also Read: KPBN Inacom CPO Price Holds at IDR 15,758/kg on Sept. 17; Rotterdam CPO at US$1,580/ton
Indonesia’s KPBN CPO Bid Holds
In Indonesia, the highest CPO bid at the PT Kharisma Pemasaran Bersama Nusantara (KPBN) Inacom tender remained at IDR 15,758 per kg on Thursday.
The CPO offered price at the tender was IDR 15,775 per kg but was marked withdrawn (WD). The highest bid of IDR 15,758 per kg was unchanged from Wednesday, Sept. 16.
The unchanged bid indicates that the domestic CPO market maintained the same highest bidding level for a second consecutive trading day.
The movements in Malaysian and Indonesian CPO markets highlight the competing forces facing palm oil prices. In Malaysia, investors are closely monitoring September exports and inventory levels, while global vegetable oil prices remain an important external factor for the CPO market. (P3)
