Palm Oil and Vegetable Oils: Bursa Malaysia CPO Daily — 2026-10-24
Malaysian crude palm oil (CPO) futures rose to a three-week high on strong export demand and a widening price discount relative to rival vegetable oils, which has attracted significant buying from India. While domestic inventories remain elevated, the Malaysian Palm Oil Council (MPOC) expects prices to stay above RM4,600 per ton in November, supported by biodiesel mandates and seasonal supply constraints.
Palm Oil and Vegetable Oils: Bursa Malaysia CPO Daily — 2026-10-24
Top developments
CPO Futures Hit Three-Week High on Export Strength
On October 23, Bursa Malaysia’s benchmark January 2027 CPO contract closed at MYR 4,817 per ton, rising across all listed contracts as export demand strengthened. This gain was driven by firmer soybean oil futures and higher crude oil prices, which boost the attractiveness of palm-based biodiesel. The price action reflects a tactical rebound after earlier profit-taking, with traders noting that strong October export data provided essential support despite heavy stocks.
Indian Buyers Lured by Widening Price Gap
A significant glut in palm oil supply has widened the price gap between palm and competing vegetable oils, making CPO increasingly attractive to top importer India. With palm trading at a discount of approximately USD 300 per ton against rivals, Indian refiners have increased purchasing activity. This demand surge is critical for Malaysia, as it helps absorb high domestic inventories that have pressured nearby futures.
MPOC Forecasts Prices Above RM4,600 for November
The Malaysian Palm Oil Council (MPOC) projects that CPO prices will remain above RM4,600 per ton through November, citing sustained biodiesel demand and India’s reduced import duties. Local media outlets like Utusan Malaysia and DagangNews have echoed this sentiment, noting that seasonal production slowdowns and export recovery from China will further underpin prices. This forecast contrasts with earlier bearish views driven by stockpile fears, signaling a shift in market sentiment toward supply tightness.
Local view
Malaysian financial media highlights the resilience of the palm oil sector despite global volatility. Malay Mail reports that while the broader Bursa Malaysia index may face pressure from foreign selling and oil price fluctuations, the commodity sector remains a key driver of investor interest. Meanwhile, DagangNews emphasizes that the RM4,600 price floor is a psychological and fundamental support level for plantation companies, driven by the dual engines of Indian demand and domestic B-biodiesel mandates.
Context & numbers
- CPO Price: The benchmark January 2027 contract closed at MYR 4,817 per ton on October 23.
- Export Growth: Malaysia’s palm oil exports increased by 4.3% year-on-year in the first nine months of 2026.
- October Export Surge: Early October export data showed a jump of approximately 58%, providing tactical support to prices.
- Indonesian Reference Price: Indonesia set its October CPO reference price at USD 1,042.15 per ton, maintaining a structural cost advantage for Malaysian exporters due to higher combined export duties and levies in Indonesia.
On the radar
- Indonesian Biodiesel B50 Policy: Indonesian media is closely monitoring the transition from B40 to B50 biodiesel mandates, which could significantly reduce palm oil export availability from Indonesia and tighten global supply.
- MPOB Data Release: Traders are awaiting the next Malaysian Palm Oil Board (MPOB) monthly report, scheduled for release on the 10th of the following month, to confirm stock levels and production trends.
- Indian Import Duty Impact: The recent reduction in Indian import duties for crude palm and soybean oil (from 10% to 5%) is expected to continue boosting demand for cheaper crude oils, potentially widening the spread between crude and refined products.
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.
Powered by
