Malaysia CPO futures climbed 0.97% to a more than two-week high, supported by concerns over 2027 supply risks from El Niño and stronger biodiesel demand. KPBN Inacom CPO prices, however, fell 0.22% to IDR 14,775/kg as Malaysian palm oil stocks remained elevated despite expectations of stronger early-October exports.
PALMOILMAGAZINE, JAKARTA — Malaysian crude palm oil (CPO) futures rose to their highest level in more than two weeks on Tuesday (Oct. 13, 2026), as concerns over potential supply tightening in 2027 and stronger biodiesel demand offset pressure from record-high palm oil inventories in Malaysia.
The benchmark CPO futures contract for December 2026 on Bursa Malaysia Derivatives gained RM45 per ton, or 0.97%, to close at RM4,682 per ton, equivalent to about US$1,146.43 per ton. The settlement marked the highest closing level since Sept. 24, 2026.
Also Read: KPBN Inacom CPO Price Falls Slightly to IDR 14,775/kg on Tuesday (Oct. 13), Malaysia CPO Gains RM45
The gain came against a mixed fundamental backdrop. While Malaysia’s palm oil inventories have climbed to their highest level in years, market participants are increasingly focused on the outlook for production and demand in 2027.
Concerns over the potential impact of El Niño on palm oil production next year provided support to prices. A prolonged weather disruption could affect plantation productivity and tighten supplies if its impact on production proves significant.
Biodiesel demand also remains a key source of support for palm oil prices. Rising use of vegetable oils as feedstocks for biofuel could strengthen demand for CPO, although the economics of biodiesel production remain sensitive to crude oil prices and competition from other vegetable oils.
Malaysian Palm Oil Stocks Reach 3.51 Million Tons
High inventories remain a major source of pressure on the Malaysian palm oil market.
Malaysia’s palm oil stocks rose to 3.51 million tons in September, as production reached a record high. The inventory level exceeded market expectations and underscored the scale of supplies available to the market.
Also Read: GAPKI IPOC 2026 to Shape Indonesia’s Palm Oil Strategy Amid Global Trade and Geopolitical Risks
Elevated stocks could limit further price gains if stronger exports fail to absorb the additional supply. However, early-October export data have provided a more constructive signal.
Cargo surveyors estimated Malaysian palm oil product exports during Oct. 1–10 increased by about 33.5%–37.7% from the previous month.
If the stronger shipment pace continues through October, exports could help ease inventory pressure. The direction of stocks in the coming months will ultimately depend on the balance between production, exports and domestic consumption.
Weaker Crude Oil Prices Cap Biodiesel Upside
In energy markets, crude oil prices weakened as traders assessed potential supply disruptions following attacks on Saudi Arabia and the possibility of additional diesel supplies from Russia.
Lower crude oil futures can weigh on the competitiveness of palm oil as a biodiesel feedstock. When fossil-fuel prices decline, the economics of vegetable-oil-based biodiesel can come under pressure, depending on feedstock prices and prevailing energy policies.
Other vegetable oil markets also moved in mixed directions.
The most-active soybean oil contract on the Dalian Commodity Exchange fell 0.65%, while palm oil futures on the same exchange declined 0.77%. In contrast, soybean oil futures on the Chicago Board of Trade (CBOT) gained 0.55%.
The divergent moves highlight the range of factors currently shaping vegetable oil markets, including supply prospects, demand, energy prices and competition among major edible oils.
Also Read: Indonesia Palm Oil Stocks Fall 19.72% to 2.214 Million Tonnes as Biodiesel Demand Rises
For palm oil, movements in soybean oil and crude oil remain important indicators because they influence the competitiveness of CPO in both food and energy markets.
KPBN Inacom CPO Price Falls to IDR 14,775/kg
In contrast to the gain in Malaysian futures, the CPO price in the PT Kharisma Pemasaran Bersama Nusantara (KPBN) tender market declined on Tuesday.
The highest bid for CPO at KPBN Inacom was IDR 14,775 per kg, down IDR 33/kg, or 0.22%, from IDR 14,808/kg on Monday (Oct. 12).
Also Read: KPBN CPO WD at IDR14,808/kg on Monday (Oct. 12), Malaysia Futures Gain Up to RM53
The divergence between the two markets underscores that movements in international futures do not necessarily translate into equivalent changes in Indonesia’s domestic tender market.
KPBN prices are also influenced by domestic supply and demand conditions as well as bidding activity during individual tenders.
Market participants will therefore continue to monitor Bursa Malaysia futures, Malaysian export trends and inventory levels for signals on the next direction of CPO prices.
Also Read: Indonesia Palm Oil Stocks Fall 19.72% to 2.214 Million Tonnes as Biodiesel Demand Rises
In the near term, elevated Malaysian palm oil stocks remain a potential cap on prices. However, stronger export prospects and growing concerns over 2027 supply could provide additional support if expectations of tighter supplies become more firmly established.
CPO Market Snapshot — Tuesday (Oct. 13, 2026)
| Indicator | Price / Level | Change |
| Bursa Malaysia, December 2026 CPO | RM4,682/ton | +RM45 (+0.97%) |
| KPBN Inacom CPO | IDR 14,775/kg | −IDR 33 (−0.22%) |
| Malaysia palm oil stocks, September | 3.51 million tons | Increased |
| Malaysia exports, Oct. 1–10 | — | Estimated +33.5%–37.7% |
Source: Bursa Malaysia, KPBN Inacom; compiled by PalmOilMagazine.
Note: Export figures are estimates from cargo surveyors. Prices and percentage changes are based on the data provided.
(P3)
