Palm Oil and Vegetable Oils: Bursa Malaysia CPO Daily — 2026-10-22
Bursa Malaysia crude palm oil futures closed Week 42 at RM4,769 per tonne, marking a 3.85% weekly gain driven by a ~58% surge in early October exports and aggressive Indian buying ahead of Diwali. Despite record-high Malaysian stockpiles, the widening price discount of palm oil against soybean and sunflower oils has spurred Indian refiners to increase daily purchases to 20,000-30,000 tons, offsetting inventory concerns.
Palm Oil and Vegetable Oils: Bursa Malaysia CPO Daily — 2026-10-22
Top developments
CPO Futures Climb 3.85% on Export Rebound
Crude palm oil (CPO) futures on Bursa Malaysia Derivatives closed Week 42 at RM4,769 per tonne, rising 3.85% for the week despite record Malaysian stocks. The rebound was fueled by a ~58% jump in exports during early October, which provided tactical support to prices even as broader vegetable oil sentiment remained weak. This surge highlights the market's sensitivity to export velocity over inventory levels in the short term.
Indian Buying Surges Due to Price Discount
A widening price discount of palm oil against sunflower and soybean oils has prompted Indian buyers to increase purchases to 20,000-30,000 tons per day ahead of the Diwali festival. This aggressive restocking has lifted Malaysian exports, helping to absorb the heavy stockpiles that had previously pressured prices. The demand is critical for maintaining price floors in the face of elevated supply.
MPOC Forecasts Prices Above RM4,600 in November
The Malaysian Palm Oil Council (MPOC) expects CPO prices to remain above RM4,600 per tonne in November. This outlook is supported by seasonal declines in production and sustained demand from the biodiesel sector, particularly with Indonesia’s potential shift to B50 biodiesel mandates. The firm forecast suggests that fundamental supply tightness later in the year will outweigh current inventory pressures.
Profit-Taking Triggers Short-Term Dip
After hitting a four-week high, Malaysian palm oil futures eased as traders engaged in profit-taking. While exports remain strong, the persistent high inventory levels continue to cap upside potential, leading to volatility. The market is currently balancing strong immediate demand against the longer-term burden of surplus stocks.
Local view
Malaysian Media Highlights Price Stability
Malaysian broadcaster RTM reported that CPO prices are expected to hold above RM4,600 per tonne in November, citing support from seasonal production drops and continuous biodiesel demand. This aligns with the MPOC’s view that fundamental factors will keep prices resilient despite current stock levels.
Indonesian Perspective on B50 Impact
Indonesian media reports indicate that the prospect of Indonesia moving to B50 biodiesel is a key catalyst for CPO prices, with futures rebounding to RM4,825 on October 20. The potential diversion of palm oil for domestic biodiesel production in Indonesia is seen as a tightening factor for global supply, supporting higher prices for Malaysian futures.
Context & numbers
- Bursa Malaysia CPO Close: RM4,769/tonne (Week 42 close), up 3.85% week-on-week.
- Export Surge: Malaysian palm oil exports jumped approximately 58% in early October.
- Indian Purchase Volume: Indian refiners are buying 20,000-30,000 tons per day of palm oil.
- Price Forecast: MPOC expects November prices to stay above RM4,600/tonne.
- Recent High/Low: Prices hit RM4,825/tonne on Oct 20 before pulling back due to profit-taking.
On the radar
- November MPOB Data: Traders are awaiting the next monthly MPOB report for updated stock and production figures, which will confirm if the recent export surge is enough to draw down record inventories.
- Indonesia B50 Mandate: Final confirmation or implementation details regarding Indonesia’s B50 biodiesel policy could significantly tighten global supply, providing a bullish catalyst for CPO.
- Diwali Demand Peak: Indian buying is expected to remain elevated through the festival season, potentially sustaining the current price floor until post-festival normalisation in November.
This content was collected, curated, and summarized entirely by AI — including how and what to gather. It may contain inaccuracies. Crew does not guarantee the accuracy of any information presented here. Always verify facts on your own before acting on them. Crew assumes no legal liability for any consequences arising from reliance on this content.
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