InfoSAWIT, JAKARTA – Indonesia’s crude palm oil (CPO) market strengthened at the start of the week, with prices at PT Kharisma Pemasaran Bersama Nusantara (KPBN) moving higher on Monday amid continued gains in the Malaysian futures market, where robust export performance and optimism surrounding Indonesia’s B50 biodiesel programme continued to support investor sentiment.
According to KPBN tender data obtained by InfoSAWIT, the Franco Dumai CPO price was set at Rp15,685 per kilogram on Monday, up Rp110 per kg, or 0.71%, from Rp15,575 per kg recorded on Friday.
Meanwhile, FOB Talang Duku was priced at Rp15,485 per kg.
The Franco Teluk Bayur tender opened at Rp15,555 per kg, but was eventually withdrawn after the highest bid reached only Rp15,300 per kg, below the seller’s expectation.
Several inland mill tenders also ended without transactions. Offers at PKS Parindu, PKS Kembayan, and PKS Ngabang were withdrawn after buyers submitted bids below the opening prices.
The domestic market followed stronger regional sentiment after September CPO futures on the Bursa Malaysia Derivatives Exchange closed RM21 per tonne, or 0.46%, higher at RM4,589 per tonne.
According to Reuters, the rally was supported by strong Malaysian export performance during June and growing optimism ahead of Indonesia’s mandatory B50 biodiesel implementation on July 1, 2026.
Cargo surveyors estimated that Malaysian palm oil exports during June 1–25 increased between 10.6% and 11.1% compared with the previous month, reinforcing expectations of resilient international demand.
Broader vegetable oil markets also provided support.
The most-active soybean oil futures on the Dalian Commodity Exchange rose 0.65%, while Dalian palm oil futures gained 1.26%. In the United States, Chicago Board of Trade (CBOT) soybean oil futures also advanced 0.49%, contributing to positive sentiment across global edible oil markets.
The combination of firmer international prices and improving export demand has continued to underpin Indonesia’s physical CPO market, even as traders remain attentive to the impact of higher domestic consumption following the implementation of the B50 biodiesel programme. (T2)
