# Indonesia's biodiesel push, El Niño risks to tighten palm oil supply

> MPOB Director General Ahmad Parveez Ghulam Kadir said Indonesia's B50 mandate will require about three million extra tonnes of palm oil a year for biodiesel. He expects crude palm oil prices to stay above RM4,000 per tonne this year. Producers are also monitoring a possible Super El Niño that could reduce oil palm yields.

- Date: 2026-06-30 · published 2026-06-30T12:00:00.000Z
- Category: policy · region Indonesia · magnitude high
- Page: https://feedsoft.ai/events/15463-indonesia-s-biodiesel-push-el-nino-risks-to-tighten-palm-oil-supply
- Commodities: [Palm Oil](https://feedsoft.ai/c/PALMOIL.md), [Soybean Oil](https://feedsoft.ai/c/SBO.md)

## Why it matters

Lower exportable supply from Indonesia combined with possible El Niño yield losses points to firmer palm oil and vegetable oil prices. Palm oil accounts for about half of globally traded vegetable oils, so the effect would spread widely.

## Read by commodity

- SBO: bullish ▲
- PALMOIL: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| PALMOIL | 2025-07-25 | [Indonesia’s B50 Biodiesel Tightens Palm Oil Supply](https://feedsoft.ai/events/15546-indonesia-s-b50-biodiesel-tightens-palm-oil-supply.md) | -0.5% | +4.7% |
| PALMOIL | 2025-11-12 | [Palm Oil Set to Soar as Indonesia’s Biofuel Push Tightens Supply – MPOC](https://feedsoft.ai/events/15515-palm-oil-set-to-soar-as-indonesia-s-biofuel-push-tightens-supply-mpoc.md) | +0.4% | -0.2% |
| PALMOIL | 2020-02-04 | [Indonesia's Thirst for Biodiesel May Undercut Global Palm Oil Supply](https://feedsoft.ai/events/54693-indonesia-s-thirst-for-biodiesel-may-undercut-global-palm-oil-supply.md) | +4.6% | -11.1% |
| PALMOIL | 2018-08-06 | [Global palm oil prices set to rise on Indonesia's biodiesel mandate](https://feedsoft.ai/events/63406-global-palm-oil-prices-set-to-rise-on-indonesia-s-biodiesel-mandate.md) | +1.8% | +0.9% |
| PALMOIL | 2020-08-19 | [Indonesia mulls palm oil levies increase to support biodiesel plans](https://feedsoft.ai/events/51467-indonesia-mulls-palm-oil-levies-increase-to-support-biodiesel-plans.md) | -0.7% | +7.2% |
| SBO | 2020-02-04 | [Indonesia's Thirst for Biodiesel May Undercut Global Palm Oil Supply](https://feedsoft.ai/events/54693-indonesia-s-thirst-for-biodiesel-may-undercut-global-palm-oil-supply.md) | +1.1% | -4.8% |
| SBO | 2018-08-06 | [Global palm oil prices set to rise on Indonesia's biodiesel mandate](https://feedsoft.ai/events/63406-global-palm-oil-prices-set-to-rise-on-indonesia-s-biodiesel-mandate.md) | -1.3% | +0.1% |
| SBO | 2020-08-19 | [Indonesia mulls palm oil levies increase to support biodiesel plans](https://feedsoft.ai/events/51467-indonesia-mulls-palm-oil-levies-increase-to-support-biodiesel-plans.md) | +1.3% | +10.6% |

## Sources

- themalaysianreserve.com: https://themalaysianreserve.com/2026/06/30/indonesias-biodiesel-push-el-nino-risks-to-tighten-palm-oil-supply/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.