JAKARTA, InfoSAWIT – Indonesia's crude palm oil (CPO) market ended the week on a softer note after all major tenders at PT Kharisma Pemasaran Bersama Nusantara (KPBN) were withdrawn on Friday, reflecting weaker buying interest amid declining palm oil futures in Malaysia.
According to market data obtained by InfoSAWIT from KPBN, the highest bid for CPO reached Rp15,550 per kilogram, down Rp200/kg, or approximately 1.27%, from Thursday's closing level of Rp15,750/kg.
At the Franco Dumai tender, CPO was offered at Rp15,700/kg, but the auction ended in a withdrawal (WD) after the highest bid reached only Rp15,550/kg. Similar outcomes were recorded across other delivery points, including FOB Talang Duku, Franco Teluk Bayur, FOB Palembang, Loco PKS Parindu & Ngabang, and Loco PKS Kembayan, where bids failed to meet sellers' expectations.
The weaker domestic trading sentiment coincided with a decline in the Bursa Malaysia Derivatives (BMD) market.
According to Bernama, Malaysian palm oil futures slipped on Friday as the market tracked weaker prices of competing vegetable oils and crude oil. Despite the daily decline, palm oil remained on course to post its second consecutive monthly gain.
Reuters reported that the benchmark October 2026 palm oil contract on the Bursa Malaysia Derivatives Exchange fell RM23 per tonne, or 0.49%, to RM4,660 (US$1,141) per metric tonne during early trading.
The benchmark contract has retreated 1.08% over the week after recording gains for three consecutive weeks. Nevertheless, prices still posted a 2.46% monthly increase, supported by resilient global demand and improving market fundamentals.
In addition to CPO, tenders for crude palm kernel oil (CPKO) and palm kernel (PK) also ended in withdrawals. CPKO tenders at FOB Lampung and FOB Palembang, along with PK tenders at several mill locations, failed to secure bids matching sellers' target prices.
The latest trading results suggest that Indonesian palm oil sellers remain cautious despite softer international prices, while buyers continue to monitor global vegetable oil markets and energy prices before making fresh purchasing commitments. (T2)
