The December 2026 CPO contract on Bursa Malaysia Derivatives fell 0.97% as expectations of higher inventories, subdued demand and weaker Malaysian palm oil exports weighed on the market.
PALMOILMAGAZINE, KUALA LUMPUR — Malaysia’s crude palm oil (CPO) futures fell on Tuesday, September 22, 2026, with the benchmark December contract closing at its lowest level since mid-August as traders assessed expectations for higher inventories and weaker export demand.
According to Reuters, the December 2026 CPO contract on Bursa Malaysia Derivatives fell RM47 per metric ton, or 0.97%, to RM4,810 per metric ton. The settlement marked the contract’s lowest closing level since August 14, 2026.
Also Read: Malaysia CPO Prices Fall 0.84% on Sept. 21 as Ringgit, Exports Weigh
Competing Vegetable Oils Send Mixed Signals
Movements in competing vegetable oils also influenced sentiment in the palm oil market.
On the Dalian Commodity Exchange, the most-active soybean oil contract gained 0.54%, while the most-active palm oil contract declined 0.49%.
Also Read: Indonesia’s Agrarian Reform Bill Draws Palm Oil Land Conflict, Worker Concerns
Meanwhile, soybean oil futures on the Chicago Board of Trade (CBOT) fell 1.32%.
The mixed performance of rival vegetable oils remained a key factor for palm oil traders, as palm oil competes with soybean oil and other edible oils in the global vegetable oil market.
Malaysian Palm Oil Exports Decline
Pressure on CPO prices was also linked to weaker Malaysian palm oil exports.
Cargo surveyors estimated that Malaysian palm oil product exports during September 1–20 fell between 12.8% and 24.7% from the previous month’s comparable period.
Also Read: KPBN CPO Price Rises to IDR 15,721/kg on Sept. 21 as Malaysia Futures Fall
The decline has drawn market attention as Malaysian export shipments provide an indication of international demand for palm oil.
Expectations of higher inventories added to the pressure. The market is weighing whether demand will be strong enough to absorb an increase in available supplies.
Indonesia’s CPO Price Falls by IDR 100/kg
In Indonesia, CPO prices quoted through PT Kharisma Pemasaran Bersama Nusantara (KPBN) were withdrawn (WD) on Tuesday, September 22.
The highest CPO bid was recorded at IDR 15,621 per kilogram, down IDR 100 per kilogram, or 0.64%, from IDR 15,721 per kilogram on Monday, September 21.
Also Read: KPBN Inacom CPO Price Falls to IDR 15,621/kg on Tuesday (Sept. 22) as Malaysia CPO Drops 0.97%
Global and domestic CPO markets are now likely to remain focused on inventory developments, Malaysian exports, demand for competing vegetable oils and trade relations between the United States and China.
These factors will remain important in determining the direction of palm oil prices in the near term. (P3)
