InfoSAWIT, JAKARTA – Indonesia's state-linked palm oil marketing company, PT Kharisma Pemasaran Bersama Nusantara (KPBN), recorded a slight increase in crude palm oil (CPO) prices on Friday, July 17, 2026, even as Malaysian palm oil futures continued to weaken amid pressure from rival vegetable oil markets.
KPBN set its benchmark CPO price at Rp15,700 per kilogram, up Rp50/kg or 0.32% from Thursday's level of Rp15,650/kg, reflecting steady domestic demand despite softer global market sentiment.
According to KPBN's latest tender results, Franco Belawan CPO was successfully sold at Rp15,700/kg. Meanwhile, several other tenders were withdrawn after bids failed to meet sellers' expectations. The Franco Tanjung Priok tender opened at Rp15,700/kg but was withdrawn after the highest offer reached only Rp15,665/kg. Likewise, the FOB Talang Duku tender was withdrawn despite a top bid of Rp15,446/kg.
Additional tenders at Boom Baru, IPP Pagun/Parba in West Kalimantan, and several palm oil mills in Parindu, Ngabang, and Kembayan also ended without transactions after bid prices remained below the asking levels.
The domestic price movement contrasted with developments on the Bursa Malaysia Derivatives Exchange (BMD), where benchmark palm oil futures declined during early trading.
According to Reuters, as published online by InfoSAWIT, the benchmark October 2026 palm oil contract slipped RM24, or 0.52%, to RM4,582 (US$1,123.59) per metric ton. The decline was mainly attributed to weaker edible oil prices on China's Dalian Commodity Exchange, which continued to weigh on market sentiment.
Despite Friday's losses, Malaysian palm oil futures remained on track for their second consecutive weekly gain, having advanced approximately 1.53% during the week, supported by improving export expectations and resilient demand.
Market participants continue to monitor movements in competing vegetable oils, crude oil prices, and export demand, all of which remain key drivers for the global palm oil market heading into the second half of July. (T2)
