InfoSAWIT, JAKARTA – Indonesia's crude palm oil (CPO) market saw another subdued trading session on Wednesday after all major tenders held by PT Kharisma Pemasaran Bersama Nusantara (KPBN) ended in withdrawals, even as Malaysian palm oil futures continued their upward momentum for a second consecutive day.
According to KPBN trading data, the highest offer for Franco Dumai reached Rp15,688 per kilogram, but the tender was ultimately withdrawn. The figure was Rp112 per kilogram lower, or approximately 0.71%, compared with Tuesday's highest achieved price of Rp15,800 per kilogram.
Other KPBN tenders also failed to conclude with successful transactions. The FOB Talang Duku tender attracted a highest bid of Rp15,375 per kilogram, while FOB Boom Baru, Palembang received a top offer of Rp15,400 per kilogram. Both auctions were withdrawn despite active bidding.
In contrast to the domestic auction results, palm oil futures on the Bursa Malaysia Derivatives Exchange continued to strengthen. Reuters reported that the benchmark October 2026 palm oil contract climbed RM14 per metric ton, or around 0.3%, to RM4,710 per ton by the midday break after posting a 1.45% gain in the previous trading session.
Market sentiment was supported by robust demand prospects, particularly from India, one of the world's largest vegetable oil importers. The country's vegetable oil imports surged to a 10-month high in July 2026 as refiners accelerated purchases of palm oil and soybean oil to replenish inventories ahead of the festive season amid tightening domestic supplies.
The stronger Indian buying is expected to provide additional support for global palm oil demand in the coming months, although gains remain capped by weaker soybean oil and crude oil prices.
Elsewhere, the most-active soybean oil contract on China's Dalian Commodity Exchange slipped 0.18%, while Dalian palm oil futures advanced 1.13%. Meanwhile, soybean oil futures on the Chicago Board of Trade (CBOT) edged 0.07% lower, reflecting mixed sentiment across the global edible oils market. (T2)
Source: InfoSAWIT
