Indonesian biodiesel policy boosts palm oil prices
In Indonesia, Reuters reports Malaysian palm oil futures rose more than 2% as traders reacted positively to Indonesia’s planned rollout of a 50% biodiesel blending mandate (B50) and ethanol-blended gasoline beginning July 1. The policy is expected to increase demand for palm oil, improving near-term market sentiment. Additional support came from stronger vegetable oil markets and a weaker Malaysian ringgit, which made exports more competitive. Export demand also remained robust, with Malaysian palm oil shipments rising significantly in early June. However, lower crude oil prices could temper biodiesel demand by reducing the economic attractiveness of vegetable oil-based fuels.
Category: Fuels
