InfoSAWIT, JAKARTA – Crude palm oil (CPO) trading sentiment remained under pressure on Thursday (May 7, 2026), as Indonesia’s domestic tender market recorded withdrawals while benchmark palm oil futures in Malaysia continued to weaken for a second consecutive trading session.
At PT Kharisma Pemasaran Bersama Nusantara, the highest bid for CPO reached Rp 15,222 per kilogram, resulting in a withdraw (WD) as sellers held back from closing transactions at offered levels. Compared with Wednesday’s reference price of Rp 15,575/kg, the tender reflected a softer market tone.
In the domestic tender session, Franco Dumai CPO opened at Rp 15,350/kg, but was withdrawn after the highest offer came in at Rp 15,222/kg. Likewise, Loco Parindu CPO opened at Rp 15,000/kg, with the highest bid at Rp 14,782/kg, also ending in withdrawal.
Other palm product tenders showed mixed movement. Palm kernel oil (CPKO) at Franco Kuala Tanjung was traded at Rp 32,550/kg, while palm kernel (PK) tenders at several locations also largely ended in withdrawals, reflecting cautious buying sentiment across the broader palm value chain.
Regionally, market weakness was also visible at Bursa Malaysia Derivatives, where the benchmark July 2026 palm oil contract slipped RM20 per ton, or 0.44 percent, to RM4,559 per ton by midday trading.
According to Reuters, the decline was driven by weaker global edible oil sentiment, especially falling soybean oil prices, a firmer Malaysian ringgit, and expectations of stronger palm oil production in Malaysia during April.
The narrowing price spread between palm oil and gas oil also weighed on market sentiment, reducing palm oil’s competitiveness as a biodiesel feedstock. Adding to bearish pressure, crude oil prices fell sharply overnight, dragging broader commodity markets lower.
Market participants are now awaiting fresh monthly supply and demand figures from the Malaysian Palm Oil Board, scheduled for release on May 11. The report is expected to provide clearer direction on short-term price trends, particularly regarding stock levels, production recovery, and export performance.
Across regional vegetable oil markets, Dalian’s most active soybean oil contract fell 1.14 percent, while palm oil futures on the same exchange declined 1.48 percent. In the United States, soybean oil prices on the Chicago Board of Trade also slipped 0.32 percent, underscoring the broader weakness in edible oil markets.
For Indonesia’s palm sector, softer international prices combined with cautious domestic tender activity suggest market players remain in a wait-and-see mode as they monitor supply fundamentals and policy-driven biodiesel demand in the weeks ahead. (T2)
