Malaysia crude palm oil futures weakened across the board on Monday as expectations of strong October production and rising inventories weighed on market sentiment, while the highest bid at the KPBN Inacom tender fell 1.20% to IDR 15,018/kg.
PALMOILMAGAZINE, KUALA LUMPUR — Malaysia’s crude palm oil (CPO) futures closed lower on Bursa Malaysia Derivatives on Monday (Oct. 26, 2026), pressured by expectations of strong October production, potentially higher palm oil inventories and uncertainty over export demand.
The November 2026 CPO contract fell RM29 to RM4,558 per metric ton, while the December 2026 contract also declined RM29 to RM4,704 per ton. The January 2027 contract dropped RM29 to RM4,789 per ton.
Also Read: Malaysia CPO Prices Forecast Above RM4,600/Ton in November 2026 as Supply Tightens
The weakness extended across the forward curve. The February 2027 contract fell RM29 to RM4,873 per ton, while March 2027 declined RM28 to RM4,948 per ton. The April 2027 contract dropped RM32 to RM4,998 per ton.
According to Bernama, trading activity weakened, with total volume falling to 54,448 lots from 91,028 lots on Friday (Oct. 23). In contrast, open interest increased to 342,858 contracts from 341,116 contracts previously.
In the physical market, the benchmark CPO price for November delivery in Southern Malaysia fell RM20 to RM4,530 per ton.
Also Read: Malaysia CPO Futures Rise Across Contracts as Export Demand Strengthens, KPBN Price Hits IDR 15,200
Production, Inventories Weigh on Market Sentiment
David Ng, a proprietary trader at Iceberg X Sdn Bhd, said expectations of strong October production and uncertainty over export demand continued to weigh on market sentiment.
He said traders were watching key technical levels, with support seen around RM4,650 per ton and resistance around RM4,850. Market participants were also monitoring soybean oil and crude oil prices for further direction.
Also Read: PTPN IV PalmCo Expands RSPO Certification to 124 Estates and 67 Mills, Certified Sales Jump 148%
Meanwhile, Anilkumar Bagani, head of commodities research at Mumbai-based Sunvin Group, attributed the weakness partly to lower energy prices and declines in related vegetable-oil futures on the Dalian Commodity Exchange and the Chicago Board of Trade.
According to Bagani, the market has shifted its focus back to actual supply-and-demand fundamentals. Malaysian palm oil inventories are expected to increase further toward the end of October despite relatively firm export performance, as production remains stronger than previously anticipated.
The combination of rising production, potentially higher inventories and uncertainty over export demand has kept traders focused on the balance between supply and demand, while movements in competing vegetable oils and crude oil prices could also influence CPO prices in the near term.
KPBN Inacom CPO Tender Ends in Withdrawal
In Indonesia, the CPO tender conducted by PT Kharisma Pemasaran Bersama Nusantara (KPBN) Inacom on Monday ended in a withdrawn (WD) result, with the highest bid recorded at IDR 15,018/kg.
The bid was down IDR 182/kg, or 1.20%, from the highest bid of IDR 15,200/kg recorded on Friday (Oct. 23).
KPBN Inacom data showed that the CPO tender at Franco Dumai opened at IDR 15,100/kg. However, the tender ended in a WD result, with the highest bid at IDR 15,018/kg.
The decline in the highest KPBN Inacom bid coincided with the broader weakness in Malaysia’s CPO futures market. However, price movements between the two markets do not always move in tandem, as each is influenced by different trading conditions, demand dynamics and pricing mechanisms. (P3)
