Malaysia CPO futures declined across the board after the 2027 Budget did not include an expected removal of Malaysia’s CPO export duty. Trading volume fell while open interest increased, while the KPBN Inacom CPO price remained unchanged at IDR 14,850/kg.
PALMOILMAGAZINE, JAKARTA — Malaysia’s crude palm oil (CPO) futures fell across the board on Bursa Malaysia Derivatives on Friday (Oct. 9, 2026), with the October and November contracts posting the largest declines of RM86 per tonne each, as market participants reacted to the absence of an expected CPO export-duty removal in Malaysia’s 2027 Budget.
According to Bernama, the October 2026 CPO contract fell RM86 to RM4,362 per tonne, while the November contract also declined RM86 to RM4,465 per tonne.
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The December 2026 contract dropped RM69 to RM4,592 per tonne, while January 2027 fell RM58 to RM4,709 per tonne. The February 2027 contract declined RM44 to RM4,810 per tonne.
The March 2027 contract slipped RM23 to RM4,902 per tonne.
The broad-based declines put pressure across the entire CPO futures curve. The absence of an announcement on the proposed removal of Malaysia’s CPO export duty in the 2027 Budget was among the factors highlighted by market participants.
Trading Volume Falls, Open Interest Rises
Trading activity weakened on Friday, with CPO futures volume on Bursa Malaysia Derivatives declining to 145,207 lots, from 160,977 lots on Thursday (Oct. 8).
In contrast, open interest increased to 337,867 contracts, from 333,864 contracts previously.
The combination indicates lower daily trading activity alongside an increase in outstanding futures positions.
In the physical market, the price of CPO for October delivery in southern Malaysia declined RM10 to RM4,450 per tonne.
KPBN Inacom CPO Price Holds
In Indonesia’s domestic market, the KPBN Inacom CPO price remained unchanged on Friday.
The CPO tender price was set at IDR 14,850/kg, the same level recorded on Thursday (Oct. 8). There was therefore no change in the KPBN Inacom price during Friday’s trading session.
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The divergence between Malaysia’s futures market and Indonesia’s KPBN tender market highlights how physical and futures markets can move in different directions over the same trading period.
For palm oil market participants, developments in both markets remain important indicators of CPO price dynamics, particularly alongside changes in trade policy, trading activity and futures positioning. (P3)
