Palm Oil and Vegetable Oils: Bursa Malaysia CPO Daily — 2026-09-13
Malaysian palm oil futures closed at a two-week low on Friday, September 11, driven by rising domestic stockpiles and weaker rival vegetable oil prices. The MPOB reported an 7.48% surge in August stocks to 2.82 million tonnes, while Indonesia finalized its September export levy at US$148 per metric tonne following a rise in the reference price to US$1,007.51.
Palm Oil and Vegetable Oils: Bursa Malaysia CPO Daily — 2026-09-13
Top developments
MPOB Data Reveals Sharp Inventory Buildup
The Malaysian Palm Oil Board (MPOB) reported on September 10 that total palm oil stocks rose by 196,590 tonnes (7.48%) to 2.82 million tonnes in August 2026, up from 2.62 million tonnes in July. This significant inventory buildup was accompanied by a 7.50% decline in exports to 1.29 million tonnes, signaling softer international demand despite production increases. The bearish supply-demand balance directly pressured Bursa Malaysia crude palm oil futures, contributing to the commodity's slide toward the RM4,855 level.
Indonesia Sets September Export Levy at US$148/MT
Indonesia’s Ministry of Trade set the export duty for crude palm oil at US$148 per metric tonne for September 2026, following an increase in the reference price (HR) to US$1,007.51 per MT from the previous month. The levy structure, governed by PMK 38/2024 as amended by PMK 68/2025, remains progressive, with the higher reference price pushing the duty into the upper bracket. For traders, this fixed cost adds a predictable premium to Indonesian CPO, potentially narrowing the arbitrage window against Malaysian futures which have been trading below RM5,000/MT.
CPO Futures Close at Two-Week Low Amid Profit-Taking
On Friday, September 11, the benchmark November contract on Bursa Malaysia Derivatives fell 0.61% to close at RM4,855 per tonne, marking the lowest closing price in two weeks. The decline was exacerbated by profit-taking after earlier gains linked to Indonesian forest fire concerns, as well as weakness in competing vegetable oils like Dalian soyoil, which dropped 0.73%. This price action reflects the market's immediate reaction to the MPOB's bearish stock data, overriding previous supply-risk premiums.
KPBN Tender Bids Drop with Market Correction
Indonesia’s state trading company KPBN saw its highest bid in the Inacom tender drop by IDR 234/kg to IDR 15,666/kg on September 11, mirroring the weakness in Malaysian futures. The fall in physical bids indicates that domestic Indonesian refiners are also adjusting their valuation downward in response to global softness and the confirmed export levy costs. This alignment between Indonesian physical prices and Bursa Malaysia futures suggests a synchronized regional correction rather than isolated local market dynamics.
Local view
Local media outlets such as DagangNews and InfoSAWIT highlighted the pressure on the Malaysian market due to the inventory spike, noting that while production increased, the export performance failed to keep pace. Vibiznews in Indonesia focused on the technical downside, reporting that the CPO benchmark closed lower by 0.61% on Friday, continuing a multi-day correction trend. Meanwhile, Rikopedia discussed the broader impact of Indonesia's B50 biodiesel mandate, suggesting that while domestic demand supports prices long-term, short-term volatility is driven by export levy adjustments and global vegetable oil spreads.
Context & numbers
- Bursa Malaysia CPO (Nov Contract): Closed at RM4,855/MT on Sept 11, down 0.61% day-on-day.
- Malaysian Stocks: 2.82 million tonnes (Aug 2026), +7.48% MoM.
- Malaysian Exports: 1.29 million tonnes (Aug 2026), -7.50% MoM.
- Indonesian Reference Price (HR): US$1,007.51/MT for September 2026.
- Indonesian Export Duty: US$148/MT for September 2026.
- KPBN Bid: IDR 15,666/kg (Sept 11), down IDR 234/kg.
On the radar
- Indian Import Trends: Indian oilseed imports surged in Q1 FY2026-27, with soybean accounting for 96% of the total, potentially signaling a shift in demand away from palm oil in the near term.
- Indonesian Biodiesel Expansion: Reports indicate Indonesia's biodiesel consumption has reached 10.7 million kiloliters under the B50 mandate, which may tighten domestic CPO availability for export in future months.
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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