CPO Prices Surge as Palm Oil Producers Continue to Celebrate
Crude palm oil (CPO) prices strengthened further during trading on Friday, 13 March 2026, on the Malaysia Derivatives Exchange.
At 09:13 WIB on Friday, 13 March 2026, CPO benchmark prices rose 0.90% to MYR 4,582 per metric tonne. Over the past week, CPO prices have surged 7.2%.
The strengthening of CPO prices continues to be underpinned by rising prices of competing vegetable oils and the spike in global crude oil prices.
West Texas Intermediate (WTI) futures contracts climbed 9.72% and closed at US$95.73 per barrel. Meanwhile, Brent crude surged 9.22% and closed at US$100.46 per barrel, marking the first close above US$100 since August 2022.
Vegetable Oil Prices, B50, and Iran Conflict Provide Support
According to Reuters, a trader based in Kuala Lumpur stated that current CPO contract movements are heavily influenced by energy market dynamics.
“The movement of futures contracts at present is very much influenced by the crude oil price situation. If there is a significant increase in the Dalian, Chicago, or crude oil markets, prices will also react accordingly,” the trader said.
He added that Indonesia’s plan to accelerate the implementation of biodiesel B50 also provides positive sentiment for the market.
During Thursday, 12 March 2026, trading, the most active soybean oil contract on Dalian (DBYcv1) rose 2.21%, whilst the palm oil contract on the same exchange (DCPcv1) surged 3.55%. Meanwhile, soybean oil prices on the Chicago Board of Trade (BOcv1) also strengthened 1.18%.
The increase in CPO prices has also been triggered by a spike in global crude oil prices following heightened tensions in the Middle East. Iran has reportedly blocked the Strait of Hormuz, a strategically important shipping lane through which approximately 20% of global oil trade passes.
Higher crude oil prices make palm oil increasingly attractive as a raw material for biodiesel production.
Exports Begin to Slow, Prices Potentially Subject to Correction
Separately, Indonesia is accelerating the road testing of biodiesel B50, which is a mixture of 50% palm oil and 50% conventional fuel. This step is being taken as a precaution against potential crude oil supply disruptions resulting from conflict in the Middle East.
However, new export orders for palm oil are beginning to slow.
The Indonesian Palm Oil Producers Association (GAPKI) has stated that there has been an increase in logistics costs and shipping insurance premiums since the outbreak of conflict between the United States, Israel, and Iran.
From a technical standpoint, Reuters analyst Wang Tao estimates that CPO futures contract (FCPOc3) prices could correct to the range of 4,494–4,514 ringgit per metric tonne, before again testing the resistance level at 4,616 ringgit.