CPO Futures Close Lower On Indonesia’s B50 Delay, Higher Stockpile

By Muhammad Fawwaz Thaqif Nor Afandi and Abdul Hamid A Rahman

KUALA LUMPUR, Jan 14 (Bernama) -- Crude palm oil (CPO) futures on Bursa Malaysia Derivatives closed lower on Wednesday, weighed down by news that Indonesia has scrapped the B50 biodiesel programme this year, amid elevated stock levels, a trader said.

Kuala Lumpur-based proprietary trader David Ng of Iceberg X Sdn Bhd said the announcement dampened market sentiment as investors reassessed demand prospects.

“Reports indicate that Indonesia’s B50 implementation, originally planned for this year, is now likely to be deferred to next year, while the country will maintain its B40 biodiesel programme,” he told Bernama.

Ng added that the higher inventory levels put additional pressure on CPO futures prices as the market faced an oversupply situation, which limited upward price movement despite other supportive factors. 

“Elevated stockpiles tend to signal weaker immediate demand, prompting traders to adopt a cautious stance and weigh the potential for slower off-take in the near term,” he said.

Industry data from the Malaysian Palm Oil Board (MPOB) showed Malaysia’s CPO stockpile rose 4.52 per cent month-on-month to 1.82 million tonnes in December 2025, up from the November levels.

At the close, the January 2026 contract slid RM15 to RM3,950 per tonne, February 2026 eased RM30 to RM4,000 per tonne, and March 2026 slid RM24 to RM4,040 per tonne. 

The April 2026 contract weakened by RM20 to RM4,059 per tonne, May 2026 slipped RM14 to RM4,069 per tonne, and June 2026 edged down RM10 to RM4,066 per tonne.

Trading volume dipped to 91,936 lots from 113,314 lots on Tuesday, while open interest was reduced to 257,760 contracts from 260,968 contracts previously.

The physical CPO price for January South receded by RM20 to RM4,030 per tonne.

-- BERNAMA