Global Palm Oil Market Weekly Summary

• Indonesia's mandatory nationwide rollout of B50 biodiesel, scheduled for 1 July 2026, is expected to absorb an additional 1.5 million tons of palm oil annually from domestic supply, placing meaningful pressure on exports against annual production of approximately 51.66 million tons. Aging plantations and rising fertilizer costs are limiting output growth, while transport and insurance costs have risen 50%, with export duties at $124 per ton plus a 12.5% levy.
• Malaysia is considering raising its biodiesel blending mandate from B10 to as high as B30, though current biodiesel production of between 9,000 and 75,000 tons represents a fraction of its 2.36 million ton installed capacity, with processing facilities running at roughly 41% utilization. Rising fertilizer costs, partly a consequence of Strait of Hormuz disruptions, threaten the yields required to support a higher mandate. Infrastructure upgrades are planned but the gap between policy ambition and operational readiness remains wide.
• In China, domestic palm oil prices fell more than 5% in early April following a profit-taking sell-off after prices breached RMB 10,000 per ton. Market sentiment remains sensitive to upstream supply signals, particularly Indonesia's tightening export availability.