Indonesian Palm Oil News (IPO News), Jakarta — Crude palm oil (CPO) prices came under renewed pressure in the global market. On Friday, September 25, 2026, the December 2026 CPO contract on the Bursa Malaysia Derivatives Exchange fell by RM100 to RM4,672 per tonne, representing a decline of around 2% from the previous trading session.
According to information received by Indonesian Palm Oil News (IPO NEWS), the decline has attracted the attention of palm oil industry players because it occurred amid a potentially positive development in India’s import policy. On September 24, 2026, the Indian government cut the Basic Customs Duty (BCD) on crude palm oil from 10% to 5%, reducing the import duty burden on CPO entering the Indian market.
However, the policy change was not enough to lift market sentiment in the following trading session. Market attention remained focused on concerns over higher production, slower exports and the possibility of rising palm oil inventories in Malaysia.
Malaysia’s Stocks Become a Key Concern
Sathia Varqa, Senior Analyst at Fastmarkets Palm Oil Analytics, said Malaysia’s palm oil inventories could exceed 3 million tonnes by the end of September.
Higher production combined with slower exports could push inventories further upward, becoming one of the key factors weighing on CPO prices.
For the market, rising inventories are an important signal because they indicate that additional supply has not yet been fully absorbed by demand.
India Cuts CPO Import Duty
The latest price decline is particularly notable because it came only one day after India introduced a policy that could potentially support demand for palm oil. The Indian government announced that the BCD on crude palm oil and crude soybean oil would be reduced from 10% to 5%, while the BCD on crude sunflower oil was reduced to zero.
The policy is aimed at lowering domestic edible oil prices and easing inflationary pressure. For CPO exporters, the reduction in import duty could theoretically improve the competitiveness of palm oil in the Indian market by lowering the landed cost for buyers. Nevertheless, Friday’s market reaction showed that supply side concerns remained a stronger focus for traders.
Pressure Comes from Several Directions
In addition to concerns over Malaysian inventories, CPO prices were also affected by weaker soybean oil and crude oil prices. A stronger Malaysian ringgit also added pressure because CPO is traded in ringgit, making the commodity relatively more expensive for buyers using other currencies.
On Friday, the October 2026 contract fell RM89 to RM4,475 per tonne, while the November contract declined RM95 to RM4,578 per tonne. January and February 2027 contracts also fell by RM102 each.
Market Awaits Inventory and Export Data
The next direction for CPO prices will depend heavily on developments in Malaysian production, exports and inventories. If inventories do exceed 3 million tonnes at the end of September, the market could receive a stronger signal that supply remains relatively abundant. On the other hand, stronger exports capable of absorbing additional production could alter the current market sentiment.
For Indonesia’s palm oil industry, the development is important to monitor because regional CPO price movements can influence trading sentiment, fresh fruit bunch (FFB) prices and the outlook for palm oil exports.
The more than 2% decline in CPO prices is therefore not simply a story about a weaker commodity price. The market is currently facing a tug of war between the potential for stronger demand from India and concerns over rising Malaysian palm oil inventories.
Muslim M. Amin
Editor in Chief
Indonesian Palm Oil News (IPO NEWS)
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