InfoSAWIT, JAKARTA – Indonesia’s crude palm oil (CPO) reference price at PT Kharisma Pemasaran Bersama Nusantara (KPBN) declined on Wednesday, October 7, 2026, as Malaysian palm oil futures continued to weaken amid concerns over rising inventories.
KPBN set its CPO price at IDR 14,625 per kilogram, down IDR 41/kg, or approximately 0.28%, from IDR 14,666/kg recorded on Tuesday, October 6, 2026.
According to information obtained by InfoSAWIT from KPBN, the Franco Dumai price was established at IDR 14,625/kg, while the FOB Talang Duku price stood at IDR 14,375/kg. At Franco Teluk Bayur, the opening price was IDR 14,425/kg, but the tender was withdrawn, with the highest bid reaching IDR 14,328/kg.
Malaysian Palm Oil Futures Extend Decline
Palm oil futures on Bursa Malaysia Derivatives closed lower for a second consecutive session on Wednesday, pressured by expectations of higher domestic inventories. Gains in crude oil prices, however, helped limit the market’s losses.
Reuters reported, as cited by InfoSAWIT, that the benchmark December 2026 palm oil contract settled RM36 per tonne lower, or 0.79%, at RM4,524 per tonne, equivalent to approximately US$1,107.20.
Malaysia’s palm oil inventories were projected to reach an all-time high in September, surpassing the previous record set in December 2018. The outlook followed a surge in production to record levels, while export demand remained relatively subdued, according to a Reuters survey.
Developments in other vegetable oil markets also weighed on sentiment. Chicago Board of Trade soybean oil futures fell 0.64%, while China’s Dalian Commodity Exchange remained closed for a national holiday and was scheduled to resume trading on Thursday.
KPBN Tender Results
KPBN’s CPO tender results on Wednesday, October 7, 2026, excluding value-added tax (VAT), were as follows:
CPO prices:
Franco Dumai: IDR 14,625/kg — CTI
Loco PKS Luwu: No bidder
CIF Gresik Port: IDR 14,625/kg — withdrawn; highest bid IDR 14,389/kg by WNI
FOB Talang Duku: IDR 14,375/kg — EUP
Franco Teluk Bayur: IDR 14,425/kg — withdrawn; highest bid IDR 14,328/kg by WIM
Loco PKS Parindu: IDR 14,235/kg — EUP
Loco PKS Ngabang: IDR 14,250/kg — EUP
Loco PKS Kembayan: IDR 14,125/kg — EUP
Crude palm kernel oil (CPKO):
Franco Dumai: IDR 27,443/kg — withdrawn; highest bid IDR 26,200/kg by PII
The combination of lower domestic tender prices and continued weakness in Malaysian futures highlights the pressure facing the palm oil market as traders assess production growth, inventory accumulation and export demand. (T2)
