Palm Oil and Vegetable Oils: Bursa Malaysia CPO Daily — 2026-10-09
Malaysian palm oil futures rebounded this week, snapping a two-week decline as Indian buyers booked 150,000 tons of palm oil in just three days. Despite this demand-driven rally, prices remain pressured by fears of record-high Malaysian stockpiles and Indonesia’s increased October export levies.
Palm Oil and Vegetable Oils: Bursa Malaysia CPO Daily — 2026-10-09
Top developments
India’s Aggressive Buying Lifts Bursa CPO Futures
Bursa Malaysia crude palm oil (CPO) futures climbed over 3% earlier in the week, driven largely by robust demand from India. Indian refiners booked approximately 150,000 tons of palm oil in a three-day window, significantly improving market sentiment and offsetting bearish inventory concerns. This surge in buying helped the benchmark contract snap a two-week losing streak, closing the week with a net gain despite mid-week volatility.
Malaysia Holds Export Duty; No Waiver Announced
On Friday, October 9, Malaysian palm oil futures fell more than 1% after the government decided not to implement an anticipated temporary export duty waiver. The October contract on Bursa Malaysia Derivatives dropped 69 ringgit, or 1.48%, to 4,592 ringgit ($1,124.66)/tonne. The lack of policy relief capped the upside from Indian buying, leaving the market to digest high domestic output and rising inventories.
Indonesia Raises October Reference Price and Export Costs
Indonesia’s Ministry of Trade set the reference price for crude palm oil at $1,042.15 per metric tonne for October 2026, up 3.44% from September levels. Consequently, the export duty (Bea Keluar) was raised to $178 per tonne, while the export levy reached $130.27 per tonne. This increase widens the cost gap between Indonesian and Malaysian exports, potentially handing Malaysia a structural price advantage in key markets like China and India.
Indonesian Exports Rise, Stocks Shrink
Indonesian palm oil exports increased by 12.56% in August 2026 compared to July, while domestic consumption also saw an uptick. GAPKI (Indonesian Palm Oil Association) reported that total stocks in Indonesia shrank during August, providing some fundamental support to regional prices. However, industry players are calling for more flexible biodiesel mandate policies to prevent export volumes from being overly constrained by domestic biofuel requirements.
Local view
Local media in Malaysia and Indonesia focused heavily on the divergence between weak export estimates and strong physical demand. In Malaysia, InfoSAWIT Sumatera highlighted that while Bursa Malaysia CPO prices rebounded to RM4,578 per tonne on Monday, the KPBN tender price in Indonesia edged down slightly by Rp41/kg. Indonesian outlets like Kontan noted that despite higher reference prices and duties, exporters are optimistic about sales volumes due to the festive season demand in India.
Context & numbers
- Bursa CPO Price: Closed Friday at RM4,592/tonne ($1,124.66/MT), down 1.48% on the day but logging a weekly gain.
- Indonesia Export Duty: Set at $178/tonne for October 2026 based on the $1,042.15/MT reference price.
- India Import Duty: India reduced import duties on crude palm and soybean oil from 10% to 5%, and cut crude sunflower oil duty to zero, effective late September.
- Indian Edible Oil Imports: September imports fell 3.75% to 1.5 million tonnes as sunflower and soybean oil imports declined, though palm oil imports remained steady.
- Indonesia Biodiesel HIP: The Ministry of Energy set the October Biodiesel Market Index Price (HIP) at Rp15,072 per liter, excluding transport costs.
On the radar
- MPOB Data Release: The Malaysian Palm Oil Board is scheduled to release its monthly stocks, production, and export data on October 10, which will be critical for confirming whether the feared record-high inventory levels have materialized.
- Sunflower Oil Shifts: Following India's duty cuts, sunflower oil imports are projected to rise by 25%, potentially squeezing palm oil’s market share in the Indian edible oil mix.
- Land Reclamation Impact: Reports indicate that nearly 260,000 hectares of reclaimed land in Indonesia has been handed to the Forestry Ministry, with plans for palm oil management, which could impact long-term supply forecasts.
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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