Palm Oil and Vegetable Oils: Bursa Malaysia CPO Daily — 2026-09-02
Bursa Malaysia crude palm oil (CPO) futures rebounded this week, closing at RM4,971 per tonne on September 1st, driven by stronger rival vegetable oils and crude oil prices. Meanwhile, Indonesia raised its September CPO reference price to US$1,007.51/MT, triggering an increase in export levies and duties. Indian importers recorded a record surge in soyoil purchases in August as they pivoted away from palm oil due to price spreads and supply concerns.
Palm Oil and Vegetable Oils: Bursa Malaysia CPO Daily — 2026-09-02
Top developments
Bursa Malaysia CPO Futures Rebound to RM4,971
On September 1, 2026, the benchmark November contract for crude palm oil on Bursa Malaysia Derivatives Exchange rose by 77 ringgit (1.57%) to close at 4,971 ringgit ($1,231.67) per metric ton. This marked a second consecutive session of gains, reversing the sharp 1.88% drop seen on August 26 when prices fell to 4,853 ringgit due to weak export demand. The recent recovery is attributed to stronger performance in rival oils, particularly Dalian soyoil which rose 0.94%, and supportive crude oil markets.
Indonesia Raises September Export Reference Price to $1,007.51/MT
Indonesia’s Ministry of Trade has set the September 2026 reference price for CPO at US$1,007.51 per metric ton, a 1.10% increase from August’s US$996.52/MT. This adjustment directly impacts the export levy (Pungutan Ekspor) and export duty (Bea Keluar), with the government setting the export duty at US$148 per ton for the period. The hike reflects improved global commodity prices and weather-related production concerns, increasing costs for Indonesian exporters and potentially narrowing the price advantage of Indonesian palm oil against Malaysian supplies.
Indian Soyoil Imports Hit Record High in August
Indian refiners imported record volumes of soybean oil in August 2026, significantly outpacing previous months as they sought cheaper alternatives to palm oil. Dealers reported that palm oil imports also reached a six-month peak but remained below soyoil volumes, driven by a widening price spread that favored soybean oil. This shift reduces immediate demand pressure on Malaysian and Indonesian palm oil exports, complicating the inventory drawdown narrative for Bursa Malaysia traders.
Malaysia’s July Stocks Rise to Five-Month High
Malaysian palm oil stocks climbed to 2.63 million tonnes in July 2026, the highest level in five months, as the decline in exports outweighed the reduction in production. While this data point is from late August reporting, it continues to weigh on market sentiment by signaling ample supply. However, traders are now monitoring El Niño risks which could threaten future yields, providing a floor for prices despite the current inventory build-up.
Local view
InfoSAWIT (Indonesia) reports that the rise in the reference price is linked to adverse weather conditions and pest attacks reducing production prospects, prompting the government to adjust levies upward. Local stakeholders are preparing for higher export costs, which may impact competitiveness against Malaysian palm oil if the price gap narrows too sharply.
Bernama (Malaysia) highlights expert forecasts suggesting Malaysia’s total palm oil exports could reach up to 16 million tonnes in 2026. Analysts note that while domestic stocks are rising, global demand resilience and potential biodiesel policy shifts remain key drivers for the sector's outlook.
Context & numbers
- Bursa Malaysia CPO (Nov Contract): RM4,971/tonne (Sep 1, 2026) vs. RM4,853/tonne (Aug 26, 2026).
- Indonesia Sept CPO Reference Price: US$1,007.51/MT (up 1.10% MoM).
- Indonesia Sept Export Duty: US$148/ton.
- Malaysia July Stocks: 2.63 million tonnes (highest in 5 months).
- Dalian Soyoil: Rose 0.94% on Sep 1, supporting palm oil valuations via substitution effects.
On the radar
- MPOB Data Release: Traders await the next monthly Malaysia Palm Oil Board (MPOB) report for August data to confirm if the stock build-up trend continued into August or stabilized.
- El Niño Watch: Continued monitoring of weather patterns in Southeast Asia; persistent dryness could tighten future supply expectations, supporting long-term prices.
- Indian Festival Season: Demand dynamics for the upcoming Diwali and festival season in India will be critical; early stockpiling trends suggest soyoil remains the preferred choice over palm oil currently.
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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