JAKARTA, InfoSAWIT – Indonesia's crude palm oil (CPO) prices traded by PT Kharisma Pemasaran Bersama Nusantara (KPBN) posted a modest increase on Thursday (July 16), even as benchmark palm oil futures in Malaysia extended their losses for a second consecutive trading session.

KPBN set the CPO reference price at Rp15,650 per kilogram, up Rp61/kg, or approximately 0.39%, from Wednesday's highest offer of Rp15,589/kg, reflecting resilient domestic pricing amid softer global market sentiment.

According to information obtained by InfoSAWIT, the Franco Belawan/Kuala Tanjung tender closed successfully at Rp15,650/kg. Meanwhile, several other tenders—including FOB Talang Duku, Franco Tanjung Priok, FOB Boom Baru Palembang, FOB IPP Pagun/Parba (West Kalimantan), and several PKS locations—ended in withdrawals after bids failed to meet sellers' expectations.

The domestic price increase contrasted with developments on the Bursa Malaysia Derivatives Exchange (BMD), where palm oil futures weakened under pressure from declining edible oil prices in both Chicago and Dalian, combined with a firmer Malaysian ringgit.

Reuters reported that the benchmark October 2026 palm oil contract fell RM42 per metric ton, or 0.52%, to RM4,577 (US$1,124.29) per metric ton during early trading.

Market analysts noted that weakness in competing vegetable oils continued to weigh on investor sentiment, while currency appreciation reduced the export competitiveness of Malaysian palm oil.

Although international prices softened, Indonesia's domestic CPO market remained relatively firm, supported by steady local demand and continued activity in the country's downstream palm oil industry. (T2)