CPO Futures Slide On Indonesia Export Policy Uncertainty, Panic Selling

By Fatin Umairah Abdul Hamid

KUALA LUMPUR, May 21 (Bernama) -- Crude palm oil (CPO) futures on Bursa Malaysia Derivatives fell on Thursday amid uncertainty over Indonesia’s export policy, which triggered panic selling, said an analyst.

Fastmarkets Palm Oil Analytics managing editor and senior analyst Dr Sathia Varqa said CPO futures declined by RM90 to RM130 across the curve, weighed down by heavy selling after fresh details on Indonesia’s revised export framework.

Indonesian President Prabowo Subianto on Wednesday announced plans to centralise key commodity exports to boost state revenues and strengthen control over natural resources.

Under the new framework, the government will implement a new strategic natural resource export governance system through a state-linked company, PT Danantara Sumberdaya Indonesia (DSI), starting June 1.

Following the announcement by the world’s largest palm oil producer, Sathia said further clarification had emerged regarding the products covered and the implementation timeline.

“However, the exact role of the newly established state-linked agency Danantara Sumberdaya in managing export flows remains unclear,” he told Bernama.

At the close, the June 2026 and October 2026 contracts tumbled RM112 each to RM4,403 per tonne and RM4,507 per tonne, respectively, the July 2026 contract dipped RM123 to RM4,433 per tonne, and the August 2026 contract declined RM125 to RM4,458 per tonne.

The September 2026 contract slid RM121 to RM4,480 per tonne and November 2026 slipped RM101 to RM4,537 per tonne.

Trading volume increased to 164,363 lots from 164,144 lots on Wednesday, while open interest decreased to 283,022 contracts from 283,536 contracts previously.

The physical CPO price for May South fell by RM80 to RM4,470 per tonne.

-- BERNAMA