Malaysia’s benchmark CPO contract posted its steepest weekly decline in recent weeks amid expectations of higher palm oil production and weaker exports, while India’s lower edible oil import duties added another market factor.
AGRICOM, JAKARTA — Crude palm oil (CPO) prices fell sharply across two key markets on Friday (Sept. 25, 2026), with Malaysia’s benchmark December 2026 contract dropping 2.07% to RM4,673 per metric ton, while PT Kharisma Pemasaran Bersama Nusantara (KPBN) recorded a top bid of IDR15,000 per kg in a withdrawn tender.
According to Reuters, the December 2026 CPO contract on Bursa Malaysia Derivatives fell RM99 per metric ton, or 2.07%, to RM4,673. The closing level was the lowest since Aug. 3, marking the weakest finish in more than seven weeks.
Also Read: Malaysia CPO Price Thursday (Sept. 24) Edges Up to RM4,771/Ton as Dalian Oils Gain
The decline also extended losses for the week. The benchmark contract fell 4.59% in the week ended Friday, reversing a 1.74% gain in the previous week.
Market pressure increased amid expectations of higher palm oil production, which could lead to rising inventories. Relatively weak exports have also added pressure to the supply-demand balance.
India’s Import Policy Adds to Market Sentiment
Developments in India’s edible oil market provided another factor for traders to monitor. On Wednesday (Sept. 23), the Indian government cut the basic import duty on crude and refined edible oils, including palm, soybean and sunflower oil.
The measure was introduced to help contain domestic cooking oil prices as demand rises during the country’s festive season.
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India is one of the world’s largest consumers and importers of edible oils, making changes to its import policy relevant to global vegetable oil markets.
However, the impact of the lower import duties on CPO prices will depend on the pace of Indian import demand, movements in competing vegetable oil prices and global palm oil supply conditions.
Also Read: KPBN CPO Price Falls IDR515 to IDR15,000/kg as Malaysia Palm Oil Futures Drop 2.07%
KPBN CPO Falls IDR515 per Kg
Domestic CPO prices also came under significant pressure in the KPBN tender on Friday. The KPBN CPO tender was withdrawn, with the highest bid recorded at IDR15,000 per kg.
The price was IDR515 per kg, or 3.32%, lower than the IDR15,515 per kg recorded on Thursday (Sept. 24).
The sharp decline in both Bursa Malaysia and Indonesia’s domestic CPO market highlights stronger selling pressure heading into the end of the week.
The combination of expectations for higher production, subdued exports and the potential for rising inventories has weighed on sentiment, while developments in major importing markets such as India remain an important factor for the outlook. (A3)
