Palm Oil and Vegetable Oils: Bursa Malaysia CPO Daily — 2026-09-14
Malaysian palm oil futures hit a two-week low on September 11, driven by MPOB data showing a 7.48% surge in August stocks to 2.82 million tonnes and a 7.50% drop in exports. While Indonesia raised its September export reference price to US$1,007.51/MT, Indian importers shifted heavily toward soybean oil, which hit record levels in August, weakening the competitive spread for palm.
Palm Oil and Vegetable Oils: Bursa Malaysia CPO Daily — 2026-09-14
Top developments
Malaysian stocks jump, exports slide in August
On September 10, the Malaysian Palm Oil Board (MPOB) reported that closing stocks for August rose 7.48% month-on-month to 2.82 million tonnes, while exports fell 7.50% to 1.29 million tonnes. This bearish supply-demand balance pressured Bursa Malaysia Derivatives (BMD) contracts, with the benchmark November contract dropping to RM4,814/ton by Friday, September 11. The inventory buildout signals that production outpaced demand, weighing on near-term price recovery despite earlier bullish sentiment regarding Indonesian supply risks.
Indonesia raises September export levy basis
Indonesia’s Ministry of Trade set the September 2026 Crude Palm Oil (CPO) reference price at US$1,007.51 per metric ton, a 1.10% increase from the previous month. Consequently, the export duty (Bea Keluar) was fixed at US$148 per metric ton for the period. This adjustment reflects higher global price benchmarks but maintains the cost floor for Indonesian exporters, potentially narrowing the arbitrage window between Indonesian and Malaysian CPO if Malaysian prices continue to soften due to local inventory pressures.
India’s soybean oil imports hit record high
Indian soybean oil imports reached a record level in August as traders capitalized on favorable spreads against sunflower and palm oils. Data indicates that India imported 5.80 lakh tons of oilseeds in the first quarter of fiscal year 2026-27, surpassing the total imports of the entire previous year. This shift reduces the immediate demand pull for Malaysian palm oil, as Indian refiners prioritize cheaper or more readily available soybean alternatives, putting downward pressure on CPO futures through reduced export volume expectations.
Local view
Local Malay-language media highlighted the divergence between rising production and falling exports. DagangNews noted that the "pressure on the local palm market" is intensifying as production continues to increase while export volumes shrink, directly impacting the valuation of BMD futures. Indonesian outlet InfoSAWIT emphasized the significant stock buildup, framing it as a critical factor for stakeholders monitoring the sustainability of current price levels amidst robust production cycles.
Context & numbers
- Bursa Malaysia CPO (Nov Contract): Closed at RM4,814/ton on Sept 11, down 2.33% for the week.
- Malaysia Stocks (Aug 2026): 2.82 million tonnes (+7.48% MoM).
- Malaysia Exports (Aug 2026): 1.29 million tonnes (-7.50% MoM).
- Indonesia Export Duty (Sept 2026): US$148/MT based on a reference price of US$1,007.51/MT.
- KPBN Inacom Bid: Dropped to IDR 15,666/kg on Sept 11, reflecting weaker regional physical demand.
On the radar
- Indonesian Forest Fires: Traders are monitoring supply disruption risks from fires in Indonesia, which could tighten global supply if conditions worsen, potentially offering support to prices currently weighed down by Malaysian inventories.
- Soyoil Spreads: With soybean oil imports hitting records in India, watch for any narrowing of the soyoil-palm oil spread, which could trigger a rotation back to palm if the discount becomes too attractive for refiners.
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
