Malaysia’s benchmark December 2026 CPO contract fell 0.79% to RM4,524 per ton, while the KPBN CPO price declined IDR 41/kg to IDR 14,625/kg as concerns over rising Malaysian palm oil inventories weighed on market sentiment.
PALMOILMAGAZINE, JAKARTA — Crude palm oil (CPO) futures on Bursa Malaysia Derivatives extended their decline for a second consecutive session on Wednesday (Oct. 7, 2026), pressured by expectations of a sharp increase in Malaysia’s palm oil inventories.
The benchmark December 2026 CPO contract closed RM36 per ton, or 0.79%, lower at RM4,524 per ton, equivalent to approximately US$1,107.20 per ton.
Also Read: Malaysia CPO Futures Fall on Tuesday (Oct. 6) as KPBN Price Edges Up to IDR 14,666/kg
According to a Reuters survey, Malaysia’s palm oil inventories are expected to reach an all-time high in September 2026, potentially surpassing the previous record set in December 2018.
The anticipated increase reflects stronger palm oil production in Malaysia, while export demand has remained relatively subdued. Rising inventories could add further pressure to CPO prices if production growth continues to outpace exports and domestic consumption.
Higher global crude oil prices provided some support to the vegetable oil market, limiting the extent of the decline in CPO futures. However, concerns over expanding palm oil supplies remained the dominant market driver.
Also Read: KPBN Inacom CPO Price Falls to IDR 14,625/kg on Wednesday (Oct. 7), Malaysia CPO Futures Weaken
KPBN CPO Price Also Declines
Indonesia’s domestic CPO market also weakened on Wednesday, with the price set by PT Kharisma Pemasaran Bersama Nusantara (KPBN) falling to IDR 14,625/kg.
The KPBN CPO price declined IDR 41/kg, or 0.28%, from IDR 14,666/kg on Tuesday (Oct. 6).
Also Read: Indonesia Sets October 2026 Biodiesel HIP at IDR 15,072/Liter, Excluding Transport Costs
The simultaneous decline in Bursa Malaysia futures and the domestic KPBN price highlights the pressure currently facing the CPO market, particularly from supply-side concerns.
Market participants are expected to closely monitor Malaysia’s inventory and production data, along with export performance, to assess whether rising supplies will continue to weigh on CPO prices in the coming sessions.
Crude oil price movements will also remain an important external factor for the vegetable oil market, including CPO, as changes in fossil fuel prices can influence the relative competitiveness of biodiesel and other vegetable-oil-based fuels.
CPO Price Snapshot
| Market | Contract/Period | Price | Change |
| Bursa Malaysia Derivatives | December 2026 | RM4,524/ton | -RM36 (-0.79%) |
| KPBN | Oct. 7, 2026 | IDR 14,625/kg | -IDR 41 (-0.28%) |
| KPBN | Oct. 6, 2026 | IDR 14,666/kg | — |
(P3)
