InfoSAWIT, JAKARTA – The price of crude palm oil (CPO) at PT Kharisma Pemasaran Bersama Nusantara (KPBN) Inacom increased by 0.84% on Tuesday, reaching IDR 15,788 per kilogram. This marks a rise of IDR 132 per kilogram from Monday’s price of IDR 15,656 per kilogram.

Based on information from KPBN, the Franco Belawan & Dumai CPO price was set at IDR 15,788/kg, while the price at Talang Duku stood at IDR 15,588/kg.

On the international market, palm oil futures prices on the Malaysia Derivatives Exchange saw an upward trend. The benchmark contract for February delivery (FCPOc3) rose by MYR 32 per ton (0.65%) to MYR 4,987 (USD 1,116.16) per metric ton during the mid-day break, according to Reuters.

Key Drivers Behind the Price Increase

The rise in palm oil prices is attributed to several factors, Flooding in Malaysia: Widespread flooding across Peninsular Malaysia has fueled fears of supply disruptions. The government warned that this could be the worst flooding in a decade, potentially impacting palm oil production, said a Kuala Lumpur-based trader.

Higher Export Levies in Indonesia, Indonesia, the world's largest palm oil exporter, has raised its CPO reference price for December to USD 1,071.67 per metric ton from USD 961.97 in November. This increase led to a higher export tax of USD 178 per ton, up from USD 124 in November, further supporting global prices.

Declining Malaysian Exports: Reports from cargo surveyors Intertek Testing Services and AmSpec Agri Malaysia revealed that Malaysian palm oil exports in November fell by 9.3% to 10.4%, limiting the upward momentum.

Market Overview

Despite a slight drop of 1.79% in soybean oil futures on the Dalian Commodity Exchange, Dalian’s palm oil contract prices rose marginally by 0.08%. Soybean oil prices on the Chicago Board of Trade also recorded a decline of 0.41%.

KPBN Tender Results (CPO & CPKO)

CPO Prices (IDR/kg, excluding VAT):

• Franco Belawan & Dumai: IDR 15,788 – EOP, AGM
• Talang Duku: IDR 15,588 – AGM

CPKO Prices (IDR/kg, excluding VAT):

• Belawan: IDR 25,425 – MM
• Lampung: IDR 24,425 – IKIN

The market remains vigilant, closely monitoring weather conditions in Malaysia and policy developments in Indonesia, which continue to influence global palm oil dynamics. (T2)