KPBN CPO withdrawn at IDR 14,600 per kg as Malaysian futures hit 11-week low

BURSA MALAYSIA DERIVATIVES, 3 OCTOBER 2026 —

Crude palm oil offered through PT Kharisma Pemasaran Bersama Nusantara (KPBN) was withdrawn on Thursday, Oct. 1, 2026, with the highest bid recorded at IDR 14,600 per kg, down IDR 321, or 2.15%, from the previous day's highest offer of IDR 14,921 per kg, according to KPBN data obtained by PalmOilMagazine.

The decline mirrored a broader regional slide as Malaysian palm oil futures on Bursa Malaysia Derivatives fell to their lowest level in 11 weeks on the same day.

Reuters reported that the benchmark December 2026 palm oil contract dropped RM57 per metric ton, or 1.24%, to RM4,553 per ton at the close, equivalent to about US$1,115.11 per ton. The fall followed a 0.59% decline in soybean oil futures on the Chicago Board of Trade, which competes with palm oil for global edible oil market share. Weaker competing vegetable oil prices and concerns over Malaysia's September exports pressured the market, Reuters said.

Cargo surveyors Intertek Testing Services and AmSpec Agri Malaysia estimated that Malaysia's palm oil exports in September declined between 17.1% and 28.8% from August. China's commodity markets were also closed from Oct. 1 to Oct. 7 for the National Day holiday, limiting trading activity in one of Asia's major commodity hubs, according to market participants cited by PalmOilMagazine.

KPBN data showed CPO at Franco Belawan opened at IDR 14,840 per kg before the tender was withdrawn at the IDR 14,600 bid. At FOB Talang Duku, the opening price was IDR 14,590 per kg, with the tender withdrawn at a highest bid of IDR 14,345 per kg. Franco Teluk Bayur opened at IDR 14,640 per kg and was withdrawn at IDR 14,331 per kg.

The withdrawal of bids across these key loading points indicates a lack of immediate buyer interest at the offered levels, PalmOilMagazine reported.

Other local tenders also saw withdrawals at lower bids. Loco PKS Luwu had no bidder, while CIF Gresik Port opened at IDR 14,840 per kg and was withdrawn at IDR 14,431 per kg. Loco PKS Bekri opened at IDR 14,740 per kg with a highest bid of IDR 14,500 per kg. Loco PKS Sei Tapung opened at IDR 14,601 per kg, with the tender withdrawn at IDR 14,279 per kg, according to the KPBN data.

Further down the price ladder, Loco PKS Parindu opened at IDR 14,450 per kg and was withdrawn at IDR 14,205 per kg. Loco PKS Ngabang opened at IDR 14,465 per kg with a highest bid of IDR 14,220 per kg. Loco PKS Kembayan opened at IDR 14,340 per kg and was withdrawn at IDR 14,095 per kg. These figures reflect a consistent downward trend in physical bids across Sumatra and Kalimantan, the data showed.

Palm kernel tenders also experienced price weakness. The Franco Medan/Belawan tender for palm kernels was withdrawn at IDR 12,900 per kg, with the highest bid recorded at IDR 12,550 per kg from SMART, indicating a similar pullback in demand for the byproduct, according to the KPBN data.

Indonesia's government set the CPO reference price for October at US$1,042.15 per metric ton, up 3.44% from US$1,007.51 in September, according to government data cited by PalmOilMagazine. The reference price determines the structure for export duties and levies. For October, the CPO export duty was set at US$178 per metric ton, while the export levy was fixed at 12.5% of the reference price, equivalent to approximately US$130.27 per metric ton.

Statistics Indonesia (BPS) reported that exports of crude and processed palm oil reached 16.13 million metric tons in January-August 2026, down 0.39% from the same period a year earlier. The combination of falling Malaysian futures, soft September export estimates, and holiday-related trading halts in China has created a bearish near-term outlook for the palm oil complex, market participants told PalmOilMagazine.

Producers face a challenging environment where lower physical bids coincide with increased export levies, squeezing margins. Market participants will likely monitor the resumption of Chinese trading after the Oct. 7 holiday for signs of renewed demand. Until then, the lack of active bidding in KPBN tenders suggests that physical prices in Indonesia may continue to track the downward momentum seen in Malaysian derivatives, the magazine reported.

Related: PT Kharisma Pemasaran Bersama Nusantara · Bursa Malaysia Derivatives · Bursa Malaysia Derivatives