Palm Oil and Vegetable Oils: Bursa Malaysia CPO Daily — 2026-10-01
Malaysian palm oil futures fell to a 10-week low on September 30, closing out the month down 5.76% as weak Malaysian exports and rising inventories pressured prices. December contracts ended at 4,626 ringgit/tonne, the lowest since late July, with September export weakness and stockpile concerns offsetting gains from India's recent import duty cuts.
Palm Oil and Vegetable Oils: Bursa Malaysia CPO Daily — 2026-10-01
Top developments
CPO Futures End September at 10-Week Low on Export Collapse
Malaysian palm oil futures for December delivery on Bursa Malaysia closed September 30 at 4,626 ringgit/tonne (approximately $1,135/tonne), the lowest level in 10 weeks and down 5.76% for the month—the first monthly decline in four months. The benchmark contract tumbled more than 2% on September 27 to 4,673 ringgit/tonne as weaker vegetable oil prices in Dalian and expectations of rising Malaysian stockpiles mounted. Export estimates for September 1–10 came in bearish, dampening sentiment despite higher crude oil prices globally.
October 1 Session: Further Losses on Weaker Soyoil and Exports
On October 1, the December CPO contract on Bursa Malaysia lost 19 ringgit, or 0.41%, to close at 4,591 ringgit/tonne. The pressure came from weaker soybean oil prices in Chicago and continued weak export data from Malaysia, signaling persistent demand challenges heading into Q4 2026.
Malaysia's Export Levy Locked at 10% for October 2026
Malaysia's government set the October 2026 CPO reference value at RM4,452.66 per tonne, maintaining the export levy at 10 percent for the month. This levy framework remains a key cost factor for Malaysian exporters as prices hover near multi-week lows.
India's Import Duty Cuts Offer Limited Support
On September 24, India cut basic customs duties on major edible oils, reducing the levy on crude soybean and palm oil to 5% from 10%, and slashing crude sunflower oil duty to zero from 10%. The move was intended to ease retail cooking oil prices ahead of the festive season. However, the impact has been limited, as Malaysian palm oil futures continued sliding through the rest of September, suggesting that local export weakness and rising inventories outweighed the demand stimulus from India's cheaper import cost.
Indonesian CPO Prices Weaken in Tandem with Bursa Malaysia
Indonesia's crude palm oil prices tracked the weakness in Bursa Malaysia through late September. KPBN (Kharisma Pemasaran Bersama Nusantara) CPO prices fell on September 29, with domestic prices now reflecting the broader bearish sentiment tied to Malaysian export pressures and rising regional stockpiles. The Indonesian B40 biodiesel program remains in effect with current export levies in the 3–7.5% range of reference prices, but weak crude oil and fading biodiesel demand have limited upside support.
Local view
InfoSAWIT (Indonesia's leading palm oil news source) reported on September 30 that weak CPO prices at KPBN coincided with Bursa Malaysia's broader decline, noting that elevated Malaysian stockpile concerns and softer export volumes are shadowing the domestic Sumatran market.
Investor.id flagged on September 29 that CPO weakness at Bursa Malaysia was driven by three factors: sluggish Malaysian exports, rising stockpiles, and soft demand from India—a major buyer.
CNBC Indonesia reported on September 30 that El Niño effects and rising biodiesel needs could support palm prices in 2027, but near-term weakness in CPO production forecasts and slowing export momentum are keeping prices under pressure through Q4 2026.
Context & numbers
Bursa Malaysia December CPO contract:
- October 1 close: 4,591 RM/tonne (−0.41%)
- September 30 close: 4,626 RM/tonne (10-week low)
- September month-end: 5.76% decline
- Approximate USD equivalent: ~$1,120–1,135/tonne
Malaysian export levy (October 2026): 10% on reference price of RM4,452.66/tonne
Indian import duty cuts (effective Sept 24):
- Crude soybean oil: 10% → 5%
- Crude palm oil: 10% → 5%
- Crude sunflower oil: 10% → 0%
Soyoil and sunflower oil spreads: Dalian vegetable oils have softened in tandem with palm weakness, limiting price support from competing oils. Chicago soybean oil futures have also weakened, amplifying bearish signals for all major vegetable oils.
On the radar
- Malaysia export estimates: Watch for updated Sept 11–20 export data (typically released mid-October by MPOB), which will signal whether the weak Sept 1–10 trend continues
- October CPO reference price: Next monthly adjustment due in early November; currently set at RM4,452.66/tonne with 10% levy intact
- Indonesian B40 biodiesel demand: Monitor whether crude oil price recovery (currently muted) can lift biodiesel feedstock demand and support CPO through Q4
- El Niño supply risk: Long-range forecasts suggest El Niño conditions may stress Malaysian palm production in H1 2027; any weather disruptions in November–December could provide price floor
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