Palm fell on export concerns, Indonesia’s biodiesel plans

Malaysian palm oil futures have fallen due to concerns over export demand and uncertainty about Indonesia's biodiesel mandate. The benchmark palm oil contract for March delivery on the Bursa Malaysia Derivatives Exchange lost 0.21%, closing at 4,356 ringgit ($968.00) a metric ton. The market is now awaiting export data from Malaysia and more information on Indonesia's biodiesel mandate. Meanwhile, crude palm oil prices have also decreased due to concerns about exports, but the weakening ringgit has made the commodity cheaper for buyers holding foreign currencies. Additionally, the European Union's soybean imports have increased by 12% in the 2024-25 season, while its palm oil imports have decreased by 18% year-on-year.

Malaysian palm oil futures settled lower on Wednesday, weighed down by export demand concerns and uncertainty over Indonesia’s biodiesel mandate. The benchmark palm oil contract FCPO1! for March delivery on the Bursa Malaysia Derivatives Exchange lost 9 ringgit, or 0.21%, to 4,356 ringgit ($968.00) a metric ton at the close. The contract rose 0.62% in the previous session. Crude palm oil prices slipped as the market continues to grapple with export concerns, said a Kuala Lumpur-based trader. Malaysia’s palm oil export data for Jan. 1-10 is expected on Friday, following December data that showed exports declined between 2.5% and 7.8%. “The market is also awaiting further news regarding Indonesia’s B40 biodiesel mandate,” the trader added. Indonesia’s Energy and Mineral Resources Minister signed a decree last Friday allocating 15.6 million kilolitres of biodiesel for 2025 distribution, while giving the industry until the end of next month to adapt. Dalian’s most-active soyoil ...