News and Articles

• Malaysian benchmark palm oil futures rose about 0.95 percent to 4,578 ringgit per tonne on October 5
• Indonesian KPBN Inacom tender slipped to about 14,605 rupiah per kilogram on October 5
• Indonesia raised October CPO reference price to 1,042.15 dollars per tonne, up 3.44 percent
• October export duty was set at 178 dollars per tonne with an added levy of 130.27 dollars
• Indonesian palm oil and derivative exports grew about 6.72 percent in August

Malaysian and Indonesian palm oil markets moved through a mixed first week of October 2026, with policy signals from Jakarta and a rebound in Malaysian futures helping to lift sentiment after a weak close to September. On October 5, the benchmark Malaysian derivatives exchange contract rose about 0.95 percent to around 4,578 ringgit per tonne, recovering from an 11 week low touched the previous week. The Indonesian KPBN Inacom tender settled lower on October 1 at about 14,600 rupiah per kilogram, with the price slipping further to about 14,605 rupiah per kilogram by October 5.

Indonesia set the tone on October 2 by raising its October reference price for crude palm oil to about 1,042.15 United States dollars per tonne, up 3.44 percent from the September benchmark of 1,007.51 dollars. The export duty was set at 178 dollars per tonne, with an additional export levy of about 130.27 dollars per tonne, calculated as 12.5 percent of the reference price. Branded RBD palm olein in containers of 25 kilograms or less drew an export duty of 48 dollars per tonne under the revised schedule.

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The reference price calculation used August 20 to September 19 averages across three regional benchmarks, with the Indonesian exchange at about 938.89 dollars per tonne, the Malaysian exchange at about 1,145.42 dollars per tonne, and the Rotterdam market at about 1,526.56 dollars per tonne. Because the gap exceeded 40 dollars per tonne, the government applied the special formula based on the two closest benchmarks, which pulled the final reference below the Rotterdam quote and kept it in a competitive export range for Asian buyers.

Market structure stayed supportive. Indonesian palm oil and derivative export growth was reported at about 6.72 percent for August, keeping the global pull-on origin cargoes firm. Freight disruption risk in the Strait of Hormuz and Bab al Mandab continued to cast a shadow over regional vegetable oil shipping schedules, while crude oil at the WTI benchmark held above 90 dollars per barrel on October 1, supporting palm oil's biodiesel case. Weather signals pointed to continued dryness in parts of Malaysia and Indonesia.

For procurement teams in food processing, biofuel blending, and oleochemical segments, the near-term action is to confirm November and December palm oil cover before Diwali and festive demand-pull regional sellers tighter. Refiners in India, Pakistan, and Vietnam should keep rolling contracts in place while Malaysian benchmark values trade in the 4,500 to 4,800 ringgit per tonne band. Industrial users of RBD and specialty palm derivatives should stress test fourth quarter cost models against a scenario where benchmark Malaysian palm oil firms back above 4,700 ringgit per tonne if the Rotterdam premium holds and Indonesian export duties stay elevated.