InfoSAWIT, JAKARTA – Indonesia’s domestic crude palm oil (CPO) reference price traded slightly lower at the start of the week, mirroring weakness in the regional vegetable oils market as softer export demand and expectations of higher April production weighed on sentiment.
At PT Kharisma Pemasaran Bersama Nusantara (KPBN Inacom), CPO was set at Rp15,459 per kilogram on Monday (April 27), down Rp41/kg, or approximately 0.26%, compared with Rp15,500/kg recorded in the previous trading session on Friday.
Market data showed Franco Dumai CPO was priced at Rp15,459/kg, while Loco Parindu opened at Rp15,109/kg but was later withdrawn after the highest bid reached only Rp14,850/kg. Similarly, Loco Kembayan was withdrawn, with the highest offer standing at Rp14,849/kg, reflecting cautious buying interest in the domestic physical market.
The softer tone in Indonesia’s market came as palm oil futures on the Bursa Malaysia Derivatives moved lower in early trading, pressured by sluggish export demand and rising production expectations.
The benchmark July 2026 palm oil contract fell RM39 per ton, or 0.85%, to RM4,558 per ton, reversing part of the previous session’s gains.
Market analysts said the pullback reflects a combination of weakening export momentum and improving supply outlook, which has limited room for further near-term price appreciation.
According to cargo surveyor Intertek Testing Services, Malaysian palm oil product exports during April 1–25 fell 15.7% month-on-month, signaling softer overseas demand and reinforcing bearish market sentiment.
At the same time, movements in competing edible oils continued to shape palm oil pricing dynamics globally.
On China’s Dalian Commodity Exchange, the most active soybean oil contract slipped 0.44%, while its palm oil contract edged up 0.17%. Meanwhile, soybean oil futures on the Chicago Board of Trade rose 0.53%, supported by broader strength in agricultural commodities.
Because palm oil competes directly with soybean oil, sunflower oil, and rapeseed oil in the global vegetable oils market, price direction is often influenced by cross-market movements and relative competitiveness among edible oils.
For Indonesia, softer international prices may weigh on near-term domestic sentiment. However, firm structural demand from the country’s biodiesel mandate and stable downstream absorption continue to provide a supportive floor for CPO prices, helping cushion volatility in export-driven markets. (T2)
