InfoSAWIT, JAKARTA – Crude palm oil (CPO) offered through Indonesia's PT Kharisma Pemasaran Bersama Nusantara (KPBN) ended in a withdrawal (WD) on Friday after bids failed to meet sellers' expectations, while the Malaysian palm oil market strengthened on improving production and higher inventory levels.

The highest bid for CPO reached Rp15,510 per kilogram on Friday (July 10), down Rp90/kg, or around 0.58%, from Thursday's offer of Rp15,600/kg.

According to KPBN tender data obtained by InfoSAWIT, the Franco Belawan tender opened at Rp15,600/kg but was withdrawn after the highest bid reached only Rp15,510/kg. Meanwhile, the FOB Parindu, West Kalimantan tender opened at Rp15,250/kg before also being withdrawn, with the highest bid recorded at Rp15,160/kg.

The softer domestic tender contrasted with firmer sentiment in the Malaysian derivatives market, where crude palm oil futures remained supported by stronger production and improving export demand.

Data released by the Malaysian Palm Oil Board (MPOB) on Friday showed that Malaysia's palm oil inventories rose 4.78% month-on-month to 2.54 million metric tons, marking the highest June stock level in several years.

The increase was primarily driven by an 8.08% rise in crude palm oil production to 1.64 million metric tons, the strongest output recorded in six months, reflecting a significant recovery after production declined in May.

Export performance also improved, with Malaysian palm oil shipments increasing 6.2% to 1.2 million metric tons, ending two consecutive months of declining exports.

Despite stronger overseas demand, production growth outpaced exports, resulting in a larger inventory build. Market participants continue to monitor stock developments closely, as higher inventories could influence global palm oil price movements in the coming weeks.

According to Reuters, the MPOB figures were broadly in line with market expectations. A Reuters survey had projected Malaysian palm oil inventories at around 2.5 million metric tons, June production at 1.65 million metric tons, and exports at approximately 1.3 million metric tons.

KPBN Tender Results (Excluding VAT) – Friday, July 10, 2026

Crude Palm Oil (CPO):

Franco Belawan: Opening Rp15,600/kg – Withdrawn (Highest bid: Rp15,510/kg)

Loco Luwu: No bidder

FOB Parindu, West Kalimantan: Opening Rp15,250/kg – Withdrawn (Highest bid: Rp15,160/kg)

Loco PKS Parindu: Opening Rp15,250/kg – Withdrawn (Highest bid: Rp15,160/kg)

Loco PKS Kembayan: Opening Rp15,150/kg – Withdrawn (Highest bid: Rp15,060/kg)

Palm Kernel (PK):

Loco PKS Aur Gading: Opening Rp13,469/kg – Withdrawn (Highest bid: Rp13,010/kg)

Loco PKS Tanjung Lebar: Opening Rp13,361/kg – Withdrawn (Highest bid: Rp12,200/kg)

(T2)