Malaysia’s palm oil futures rose across the board on Tuesday, supported by firmer crude oil and vegetable oil prices, stronger early-October exports and expectations for higher Indonesian biodiesel demand.
PALMOILMAGAZINE, JAKARTA — Malaysian crude palm oil (CPO) futures climbed across all listed contracts on Tuesday (Oct. 20, 2026), supported by gains in crude oil and other vegetable oils, while stronger export shipments and expectations for Indonesia’s B50 biodiesel program improved market sentiment.
According to Bernama, the November 2026 CPO futures contract rose RM80 to RM4,595 per metric ton. The December 2026 contract gained RM66 to RM4,732 per ton, while January 2027 increased RM51 to RM4,817 per ton.
Also Read: Malaysia CPO Futures End Mixed as Higher Inventory Concerns Weigh on Market
Further along the forward curve, the February 2027 contract rose RM41 to RM4,898 per ton, March 2027 gained RM32 to RM4,968 per ton, and April 2027 advanced RM24 to RM5,017 per ton.
Trading activity also strengthened. Volume increased to 142,270 lots from 106,846 lots on Monday (Oct. 19), while open interest rose to 334,160 contracts from 332,357 contracts.
Production Outlook and El Niño Support CPO Prices
Independent trader David Ng of Iceberg X Sdn Bhd said expectations of slower palm oil production toward the end of the year remained supportive for prices.
The market is also monitoring ongoing labor shortages in the plantation sector and the potential for weather disruptions linked to El Niño in 2027, factors that could affect palm oil production and supply.
Also Read: CPO Prices Forecast to Stay High Through 2027 on El Niño Risk and Biodiesel Demand
Ng identified immediate technical support for CPO futures around RM4,770-RM4,785 per ton, with resistance seen at RM4,800-RM4,820 per ton.
The outlook highlights the market’s focus on the balance between potentially tighter supply and the strength of global palm oil demand.
Malaysia Palm Oil Exports Surge in Early October
On the demand side, Malaysian palm oil shipments strengthened significantly during the first half of October.
Citing cargo surveyor estimates, Trading Economics reported that Malaysia’s palm oil exports during the first half of October increased by around 43.2% to 58.3% from the corresponding period in September.
Also Read: Malaysia CPO Futures Rise to RM4,700 as Early-October Exports Jump Up to 37.73%
The stronger shipments have reinforced expectations for export demand. India, one of the world’s largest vegetable oil importers, remains a key market to watch ahead of major religious festivals that could boost demand for edible oils.
Higher global crude oil prices have also provided support by improving the competitiveness of palm oil as a feedstock for biodiesel. Gains in vegetable oil prices on the Dalian Commodity Exchange in China have added further support to the palm oil market.
Also Read: Rising Biodiesel Demand Could Push CPO Prices Higher in 2027, GAPKI Says
Indonesia’s B50 Biodiesel Plan in Focus
Indonesia’s biodiesel policy remains another important factor for the palm oil market.
The country’s CPO reference price for October 2026 increased 3.44% to USD 1,042.15 per ton, providing an important benchmark for Indonesia’s palm oil trade and policy framework.
Market participants are also watching plans to implement the B50 biodiesel mandate. If implemented, the program could increase domestic palm oil absorption for energy use and potentially reduce the volume of CPO available for export.
However, elevated Malaysian inventories remain a constraint on the market’s upside. Malaysia’s palm oil stocks reached a record 3.51 million tons in September as production increased during the seasonal peak.
The high inventory level could limit further price gains. Market direction will therefore depend on the interaction between exports, production, biodiesel demand and inventory trends across major producing countries.
Also Read: GAPKI IPOC 2026 to Shape Indonesia’s Palm Oil Strategy Amid Global Trade and Geopolitical Risks
KPBN Inacom CPO Price Rises IDR 108/kg
In Indonesia’s domestic market, the CPO tender price at PT Kharisma Pemasaran Bersama Nusantara (KPBN) Inacom rose IDR 108/kg, or 0.72%, to IDR 15,158/kg on Tuesday (Oct. 20).
The price increased from IDR 15,050/kg recorded in Monday’s tender. The rise in the KPBN Inacom price broadly tracked the stronger performance of Malaysian CPO futures during the session.
Also Read: IPOC 2026 to Strengthen Indonesia’s Palm Oil Strategy for Food, Energy and Economic Resilience
Malaysia CPO Futures Prices — Oct. 20, 2026
| Contract | Closing Price (RM/ton) | Change (RM/ton) |
| November 2026 | 4,595 | +80 |
| December 2026 | 4,732 | +66 |
| January 2027 | 4,817 | +51 |
| February 2027 | 4,898 | +41 |
| March 2027 | 4,968 | +32 |
| April 2027 | 5,017 | +24 |
Source: Bernama, compiled by PalmOilMagazine.
(P3)
