InfoSAWIT, JAKARTA – Indonesia's crude palm oil (CPO) auction conducted by PT Kharisma Pemasaran Bersama Nusantara (KPBN) ended in withdrawals across all major tenders on Friday (July 24), even as Malaysian palm oil futures climbed to their highest level in 15 weeks amid stronger global energy prices and tightening supply expectations.

KPBN recorded the highest CPO bid at Rp15,768 per kilogram, down Rp32/kg (0.20%) from Thursday's highest offer of Rp15,800/kg.

At the Dumai Franco tender, CPO was offered at Rp15,900/kg but concluded with a withdrawal after the highest bid reached Rp15,768/kg. Similar conditions occurred at Teluk Bayur, where the opening offer stood at Rp15,770/kg while the highest bid reached Rp15,620/kg before the tender was withdrawn.

The softer domestic auction contrasted with stronger international market sentiment.

According to Reuters, benchmark October 2026 CPO futures on the Bursa Malaysia Derivatives Exchange gained RM41 per tonne, or 0.87%, to RM4,751 per tonne during midday trading. The contract has now advanced approximately 3.35% for the week, marking its third consecutive weekly gain.

The rally was supported by higher crude oil prices, stronger vegetable oil futures on China's Dalian Commodity Exchange, and expectations of tighter Indonesian export supplies following the implementation of the country's mandatory B50 biodiesel program.

Elsewhere, the most active soybean oil contract on Dalian rose 0.88%, while palm oil futures gained 1.33%. In contrast, soybean oil futures on the Chicago Board of Trade slipped around 0.23%.

The combination of firm international prices and Indonesia's biodiesel policy continues to reinforce bullish sentiment in the global palm oil market, although domestic physical trading remains cautious as reflected in repeated tender withdrawals. (T2)

Source: KPBN, Reuters