Malaysian CPO futures fell 1.48% to RM4,739 per ton as rising inventory expectations, weaker exports and declining vegetable oil prices weighed on the market, while Indonesia’s KPBN CPO price dropped IDR 106/kg to IDR 15,515/kg.
PALMOILMAGAZINE, KUALA LUMPUR — Malaysian crude palm oil (CPO) futures extended their decline for a fourth consecutive session on Wednesday (Sept. 23, 2026), pressured by expectations of rising inventories, weaker exports and subdued global demand.
According to Reuters, the benchmark December 2026 CPO contract on Bursa Malaysia Derivatives fell RM71, or 1.48%, to RM4,739 per metric ton at midday, equivalent to about US$1,163.80 per ton.
Also Read: Malaysia CPO Prices Fall to RM4,810, Lowest Since August
Market participants are increasingly concerned that Malaysia’s palm oil inventories could approach or exceed 3 million tons by the end of September, as production rises while demand remains relatively weak.
Production growth, particularly in the state of Sabah, has contributed to expectations of higher supplies. The prospect of larger inventories is adding pressure to prices as the market assesses whether demand will be strong enough to absorb the additional output.
Malaysian Exports Remain Under Pressure
Export performance remains another key factor weighing on the market.
Cargo surveyors estimated that Malaysian palm oil product exports for Sept. 1–20 fell between 12.8% and 24.7% compared with the same period in August. The estimates varied among cargo survey companies but pointed to weaker shipments during the first 20 days of September.
Also Read: Malaysia CPO Prices Fall 0.84% on Sept. 21 as Ringgit, Exports Weigh
The decline in exports has reinforced concerns that rising supply may not be matched by sufficient demand, adding to bearish sentiment in the Malaysian futures market.
Competing Vegetable Oils Also Decline
CPO also faced pressure from weakness across competing vegetable oil markets.
On Wednesday, the most-active soybean oil contract in Dalian fell 0.61%, while Dalian palm oil declined 1.79%. On the Chicago Board of Trade, soybean oil prices fell 0.97%.
Also Read: CPO Prices Forecast to Stay High Through 2027 on El Niño Risk and Biodiesel Demand
Movements in competing vegetable oils are closely watched by palm oil traders because soybean oil and other vegetable oils compete with CPO for market share in the global edible oils and biofuel markets.
Lower crude oil prices also weighed on sentiment. Cheaper fossil fuels can reduce the relative attractiveness of vegetable oils as feedstocks for biodiesel production.
EU Palm Oil Imports Fall 26%
Global demand indicators have also raised concerns among market participants.
European Commission data showed that EU palm oil imports for the 2026/2027 marketing season reached about 560,000 tons through Sept. 20, down 26% from the corresponding period of the previous season.
The decline highlights the challenge facing the palm oil market as producers contend with increasing supplies while demand growth remains insufficient to absorb the additional volume.
Also Read: KPBN Inacom CPO Price Falls to IDR 15,515/Kg on September 23 as Rotterdam CPO Weakens
KPBN CPO Price Falls IDR 106/kg
In Indonesia, the CPO price through PT Kharisma Pemasaran Bersama Nusantara (KPBN) was set at IDR 15,515/kg on Wednesday (Sept. 23).
The price fell IDR 106/kg, or 0.68%, from the highest CPO bid of IDR 15,621/kg recorded on Tuesday (Sept. 22).
Also Read: KPBN Inacom CPO Price Falls to IDR 15,621/kg on Tuesday (Sept. 22) as Malaysia CPO Drops 0.97%
The decline in both Malaysian futures and Indonesia’s domestic CPO market underscores the broader pressure currently facing palm oil prices.
Market attention will now turn to Malaysia’s latest production and export data for signs of whether the expected increase in inventories will continue through the end of September or begin to be offset by a recovery in demand. (P3)
