Palm Oil and Vegetable Oils: Bursa Malaysia CPO Daily — 2026-10-30
Malaysian palm oil futures faced a volatile week, ending lower despite strong export demand due to high inventories and a firmer ringgit. Meanwhile, Indonesia’s planned new commodity exchange and B50 biodiesel mandate are reshaping regional supply expectations, while India’s recent import duty cuts continue to widen the price gap between palm and rival vegetable oils.
Palm Oil and Vegetable Oils: Bursa Malaysia CPO Daily — 2026-10-30
Top developments
Bursa Futures Slip on Inventory Pressures
Malaysian palm oil futures fell more than 1% on Thursday, October 29, reaching a nearly three-week low as high inventories and weaker rival oils offset strong export demand. The benchmark contract closed at RM4,687 per ton on October 28, marking a 0.3% decline, while Rotterdam CPO prices dropped by US$20 per ton. Despite the weekly dip of 3.9%, early Friday trading saw gains of 0.56% driven by firm crude oil prices.
Indonesia’s Icomex to Complement Bursa FCPO
Market participants in Malaysia view Indonesia’s planned new commodity exchange, Icomex, as a potential complement to Bursa Malaysia’s established FCPO benchmark rather than a direct competitor. Analysts note that the success of Icomex in price discovery will depend on achieving sufficient liquidity, data transparency, and participant confidence. This development highlights the ongoing competition for benchmark status in Southeast Asian palm oil trading.
B50 Biodiesel Mandate Drives Consumption Forecasts
Indonesia’s National Energy Council (DEN) is pushing for increased smallholder productivity to meet the needs of the B50 biodiesel mandate, which is projected to require 17 million tons of CPO. This shift from B40 to B50 is expected to significantly boost domestic consumption, potentially tightening global export supplies and supporting long-term price levels.
Indian Buyers Exploit Widening Price Gaps
The recent reduction in India’s import duties on crude palm and soybean oils to 5% has widened the price gap between palm oil and its rivals, attracting more Indian buyers. While the duty cuts were announced in late September, their impact on import volumes and price spreads remains a key driver of current market dynamics.
Local view
Indonesian media outlets like Investor.id report that CPO prices are under pressure from record-high Malaysian stocks, which reached 3.51 million tons, despite rising export volumes. Conversely, Kontan highlights that CPO prices rebounded to RM4,700 driven by pre-Diwali export surges and stronger competing vegetable oil prices.
Context & numbers
- Bursa FCPO (Oct 29): Closed lower, with the January contract trading near RM4,770 earlier in the week before declining.
- KPBN Price (Oct 29): Set at IDR 14,963/kg, a drop from IDR 15,100/kg on October 28.
- MPOB Stocks: Malaysian inventories rose to 3.51 million tons, hitting a record high.
- Indonesia Export Levy: The October reference price is set at USD 1,042.15/MT, resulting in an export duty of USD 178/MT and a levy of USD 130.269/MT.
On the radar
- MPOB Data Release: Traders are awaiting the next monthly MPOB data release for updated production and stock figures, which will be critical for assessing the sustainability of the recent inventory build-up.
- Icomex Launch Details: Further announcements regarding the operational mechanics and liquidity providers for Indonesia’s new Icomex exchange will be watched closely for their potential impact on FCPO liquidity.
- Indian Import Trends: Continued monitoring of Indian buying patterns following the duty cuts, particularly as Diwali consumption peaks and then subsides.
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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