Palm Oil and Vegetable Oils: Bursa Malaysia CPO Daily — 2026-09-12
Bursa Malaysia crude palm oil (CPO) futures slipped to a two-week low of RM4,855 per tonne on Friday, September 11, driven by a bearish MPOB report showing August stocks rose 7.48% to 2.82 million tonnes. Meanwhile, Indonesia’s Ministry of Trade finalized the September export levy at US$148 per metric ton following a rise in the reference price to US$1,007.51/MT.
Palm Oil and Vegetable Oils: Bursa Malaysia CPO Daily — 2026-09-12
Top developments
MPOB Data Triggers Sell-Off as Stocks Hit 2.82 Million Tonnes
On September 10, the Malaysian Palm Oil Board (MPOB) reported that closing stocks for August 2026 surged 7.48% month-on-month to 2.82 million tonnes, while exports contracted by 7.50% to 1.29 million tonnes. This data significantly exceeded market expectations, prompting profit-taking that drove benchmark November CPO futures down more than 1% on September 10 and into Friday’s session. The inventory buildup signals weaker demand from key importers like India, putting immediate downward pressure on Bursa Malaysia prices despite earlier supply-risk premiums
Indonesia Sets September Export Levy at US$148/MT
Indonesia’s Ministry of Trade (Kemendag) confirmed on September 10 that the export duty (Bea Keluar) for September 2026 is set at US$148 per metric ton. This decision follows the adjustment of the Crude Palm Oil (CPO) reference price (Harga Referensi) to US$1,007.51 per metric ton, a 1.10% increase from the previous period. The levy rate remains at the maximum tier for this price band, impacting Indonesian exporters' competitiveness against Malaysian cargoes in international tenders
KPBN Tender Bids Drop Amid Weak Market Sentiment
Indonesia’s state trading enterprise, PT Kharisma Pemasaran Bersama Nusantara (KPBN), saw its highest bid for CPO drop to IDR 15,666 per kg in its recent tender, a decline of IDR 234/kg from previous sessions. The drop mirrors the weakness in Bursa Malaysia futures and reflects cautious buying behavior among domestic refiners and exporters facing higher levies. This trend suggests that physical market sentiment is aligning with the bearish futures outlook, potentially delaying aggressive procurement until prices stabilize
Soyoil Spreads Narrow as Dalian Futures Retreat
Dalian soybean oil futures fell 0.31% on September 11, continuing a multi-session decline that has narrowed the spread between palm oil and its primary vegetable oil competitor. The weakness in soyoil, often driven by favorable crop conditions in South America and stable US exports, reduces the substitution appeal of palm oil, further weighing on CPO demand. Traders are monitoring the palm-soyoil spread closely; if it widens too much, Indian buyers may shift entirely to soyoil, exacerbating the inventory build in Malaysia
Local view
DagangNews (Malay): Highlights the stark contrast in the MPOB report, noting that while production continues to increase, the 7.50% drop in exports indicates "pressure on the local palm oil market." The outlet emphasizes that high stocks are a direct result of demand destruction in major markets, urging stakeholders to watch for policy adjustments or new export incentives
Vibiznews (Indonesian): Reports that the CPO contract closed weak at RM4,855/tonne on Friday, describing the move as a correction following earlier gains. The outlet notes that the "bearish MPOB data" was the primary catalyst, overriding any geopolitical or weather-related supply concerns
Context & numbers
- Bursa Malaysia CPO (Nov Contract): Closed at RM4,855/tonne on September 11, down 0.61% from the previous day. It hit a two-week low during the session
- MPOB August Stocks: 2.82 million tonnes (+7.48% MoM).
- MPOB August Exports: 1.29 million tonnes (-7.50% MoM).
- Indonesia Reference Price: US$1,007.51/MT (+1.10% vs Aug).
- Indonesia Export Duty: US$148/MT (Fixed for Sept).
- Dalian Soyoil: Down 0.31% on Sept 11.
- KPBN Bid: IDR 15,666/kg (Down IDR 234/kg).
On the radar
- Indonesian Forest Fires: Bloomberg reported on September 7 that forest fires in Indonesia are raising supply risk concerns. While currently overshadowed by MPOB data, any escalation could tighten supply forecasts for Q4
- Indian Festival Demand: Indian soybean oil imports reportedly hit record levels in August ahead of festivals. Analysts are watching if this demand carries over into September for palm oil, which could help absorb some of the Malaysian surplus
- B50 Biodiesel Progress: Local Indonesian reports mention progress toward B50 biodiesel implementation, with current biodiesel volumes reaching 10.7 million KL. Increased domestic blending mandates in Indonesia continue to be a structural support for global palm oil prices, though short-term price action remains dominated by export data
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