InfoSAWIT, JAKARTA – Indonesia's crude palm oil (CPO) prices posted a solid gain on Thursday (July 23), tracking stronger sentiment in the global vegetable oil market as Malaysian palm oil futures and crude oil prices moved higher.

According to tender results released by PT Kharisma Pemasaran Bersama Nusantara (KPBN), the CPO reference price at Franco Dumai climbed to Rp15,800 per kilogram, an increase of Rp289/kg, or approximately 1.86%, from the highest offer recorded on Wednesday (July 22), which stood at Rp15,511/kg.

Meanwhile, the FOB Palembang tender settled at Rp15,650/kg, while the Franco Teluk Bayur tender was withdrawn despite receiving a highest bid of Rp15,496/kg.

The positive momentum in Indonesia's physical market mirrored developments on the Bursa Malaysia Derivatives, where benchmark CPO futures extended gains during early trading.

According to Reuters, the benchmark October 2026 palm oil contract rose RM89 per tonne, or 1.93%, to RM4,711 per tonne, reversing losses seen in several previous trading sessions. The rebound was supported by firmer prices across competing vegetable oils and strengthening crude oil markets, which improved the outlook for edible oils globally.

Market sentiment also improved after edible oil prices advanced on major international exchanges. The most active soyoil contract on China's Dalian Commodity Exchange gained around 0.66%, while Dalian palm oil futures surged 2.53%. In the United States, Chicago Board of Trade (CBOT) soyoil futures also climbed 0.89%, adding further support to palm oil prices.

The synchronized gains across global vegetable oil markets reinforced expectations of stronger demand, helping lift CPO prices in both Malaysia's futures market and Indonesia's domestic physical market.

KPBN's Thursday tender also showed several withdrawn offers for CPO, palm kernel oil (CPKO), and palm kernel (PK), reflecting cautious trading activity despite the overall improvement in market sentiment. (T2)

Source: KPBN, Reuters