CPO Price Update: KPBN & Bursa Malaysia Market Slump on Feb 6, 2026 – Key Drivers Behind the Drop
The palm oil market closed the week on a bearish note. After maintaining a strong position earlier this week, both the physical tender prices at KPBN (Inacom) and the futures market at Bursa Malaysia Derivatives (BMD) saw a significant correction on Friday, February 6, 2026.
1. KPBN CPO Physical Tender Report
According to the tender results from PT Kharisma Pemasaran Bersama Nusantara (KPBN), physical CPO prices dropped by IDR 85 compared to yesterday’s closing.
Yesterday’s Price (Feb 5): IDR 14,700 /kg
Today’s Price (Feb 6): IDR 14,615 /kg (Franco Dumai)
Status: Withdraw (WD). Sellers held back as buyers’ bids fell short of the internal reserve price.
2. Bursa Malaysia Derivatives (BMD) Report
In tandem with the domestic market, the Malaysian bourse also showed weakness. The benchmark contract for April/May delivery traded lower, dropping between 15-20 Ringgit during the midday session and remaining under pressure due to negative sentiment in the global vegetable oil sector.
Why are CPO Prices Falling Today? (Fundamental Analysis)
The IDR 85/kg drop in the domestic market is driven by several key factors:
•Weakness in Rival Edible Oils: Prices for soybean oil (soyoil) on the Chicago Board of Trade (CBOT) and the Dalian Commodity Exchange (China) are currently declining. Since CPO is a primary substitute for soybean oil, it must adjust its price downward to remain competitive in the global market.
•Weekly Profit Taking: Approaching the weekend, traders often engage in “profit taking.” After a price rally in early February, many market participants sold off their contracts to lock in gains, which naturally applied downward pressure on prices.
•Anticipated Production Increase: Preliminary data suggests a potential rise in output across Malaysia and Indonesia as weather conditions improve in key planting regions, easing concerns over supply tightness.
•Indian Import Sentiments: The market is closely watching potential changes in import duties in India (the world’s largest palm oil importer). Rumors of tax adjustments have led major buyers to adopt a “wait and see” approach, delaying large-scale purchases.
Impact on FFB (Fresh Fruit Bunch) Prices
The IDR 85 drop at KPBN is expected to have a direct impact on the FFB (TBS) pricing at palm oil mills (PKS) tomorrow (Saturday). Farmers should anticipate a potential reduction in gate prices, estimated between IDR 20 to IDR 50 per kilogram.