Indonesian CPO auction prices fall as global vegetable oil markets weaken
KPBN’s highest CPO offer fell by Rp321 to Rp14,600 per kilogram on October 1, with domestic tenders ending in withdrawal. Malaysian futures also reached an 11-week low as weaker soybean oil prices and declining Malaysian exports weighed on the market.
KPBN tenders end without deals
Indonesian crude palm oil prices came under pressure at the beginning of October 2026 as weakness in international vegetable oil markets reached domestic auctions. The highest offer in the PT Kharisma Pemasaran Bersama Nusantara, or KPBN, tender on October 1 was Rp14,600 per kilogram, according to InfoSAWIT Sumatera. That was Rp321 below the previous day's highest offer of Rp14,921 per kilogram.
The domestic tender ended in withdrawal, indicating that bids did not meet sellers' price expectations. Franco Belawan CPO opened at Rp14,840 per kilogram, while the highest offer reached Rp14,600. CIF Gresik Port opened at the same price but attracted an offer of Rp14,431 per kilogram.
Discounts were also visible at other delivery points. FOB Talang Duku opened at Rp14,590 per kilogram and received a highest offer of Rp14,345, while Franco Teluk Bayur opened at Rp14,640 and drew Rp14,331. Offers at the Bekri, Sei Tapung, Parindu, Ngabang and Kembayan mill locations ranged from Rp14,095 to Rp14,500 per kilogram. Franco Medan/Belawan palm kernel was quoted at Rp12,900 per kilogram, against a highest offer of Rp12,550.
Malaysian futures reach an 11-week low
The Indonesian auction weakness coincided with a decline on Bursa Malaysia Derivatives. The benchmark December 2026 CPO contract closed RM57 per tonne, or 1.24%, lower at RM4,553 per tonne. InfoSAWIT Sumatera, citing Reuters, said this was the contract's lowest level in 11 weeks.
Competing vegetable oils added to the pressure because they compete with palm oil for demand from food manufacturers, fuel producers and other industrial buyers. Soybean oil on the Chicago Board of Trade declined 0.59% during the same session. Lower prices for a substitute oil can limit the ability of palm oil sellers to maintain premiums without losing demand.
Export indicators provided another weak signal. Cargo surveyors Intertek Testing Services and AmSpec Agri Malaysia estimated that Malaysia's palm oil product exports fell by between 17.1% and 28.8% in September from the previous month. The size of that monthly contraction increased concern over demand at the start of the final quarter of 2026, although the two surveyors reported different rates of decline.
Indonesian exports remain close to last year's level
Indonesia exported 16.13 million metric tonnes of crude palm oil and processed products in January-August 2026, according to Statistics Indonesia. The volume was 0.39% lower than in the same period a year earlier, showing a comparatively modest decline against the sharper September fall reported for Malaysian shipments. Indonesia set its October 2026 CPO reference price at US$1,042.15 per tonne. For producers and downstream buyers, the gap between tender opening prices and bids will be important: prolonged withdrawals could delay physical sales, while sustained weakness in futures and competing oils could push sellers toward lower clearing prices. Plantation operators in Sumatra will also monitor the market because downstream CPO prices and commodity futures are among the factors affecting regional fresh fruit bunch prices.
