Indonesia’s KPBN Inacom CPO tender price fell IDR 43/kg to IDR 15,115/kg on Wednesday (Oct. 21), while Rotterdam CPO prices strengthened across the October and November contracts.
PALMOILMAGAZINE, JAKARTA — Indonesia’s crude palm oil (CPO) market moved lower in Wednesday’s PT Kharisma Pemasaran Bersama Nusantara (KPBN) Inacom tender, with the highest price falling to IDR 15,115/kg from IDR 15,158/kg a day earlier.
The decline amounted to IDR 43/kg, or about 0.28%, reflecting weaker domestic tender indications despite firmer prices in the international palm oil market.
Also Read: KPBN Inacom CPO Price Rises IDR 108 to IDR 15,158/kg on Tuesday (Oct. 20), Rotterdam Market Mixed
The highest CPO bid in the KPBN tender was recorded under the Franco Dumai delivery scheme at IDR 15,115/kg. Under the FOB Teluk Duku scheme, CPO was traded at IDR 14,865/kg.
Several other tender locations ended with withdrawn (WD) status after the highest bids failed to meet sellers’ price expectations.
At Teluk Bayur, the highest bid reached IDR 14,706/kg, below the seller’s indicated price of IDR 14,915/kg. A similar situation was seen in West Kalimantan, where the CPO tender at Loco PKS Parindu was withdrawn at IDR 14,725/kg after the highest bid came in at IDR 14,532/kg.
Also Read: World Bank, CPOPC Call for Palm Oil Investment to Create More Jobs
The same pattern was recorded at Loco PKS Ngabang and Loco PKS Kembayan, where winning prices were set above the highest bids submitted by buyers.
Rotterdam CPO Prices Move Higher
In contrast to the decline in the domestic KPBN tender, palm oil prices in the Rotterdam market strengthened on Wednesday.
The October CPO contract rose US$20 to US$1,565 per ton, while the November contract gained US$15 to US$1,575 per ton.
Also Read: Malaysia CPO Futures Surge, November Contract Jumps RM80 to RM4,595 per Ton
RBD palm olein (OLE) also advanced, with the November contract rising US$15 to US$1,160 per ton and the December contract increasing by the same amount to US$1,195 per ton.
Other vegetable oils showed mixed movements. Soybean oil (SBO) gained US$5, while coconut oil (CNO) fell US$10 for the October-November contract to US$2,000 per ton and declined another US$10 for the November-December contract to US$2,010 per ton.
The divergent movements between Indonesia’s domestic tender market and Rotterdam highlight differing price signals across palm oil markets. While international palm oil prices strengthened, buying interest at several Indonesian tender locations remained below sellers’ price expectations, resulting in a number of withdrawn tenders.
Market participants will continue to monitor the direction of global vegetable oil prices, export demand and the balance between palm oil supply and demand as the market moves toward the end of October. (P3)
