
Malaysia is accelerating biodiesel use, with the government spending over US$1.8 billion monthly on fuel subsidies. Current mandates are B10, with plans to move toward B15 and later B20 or B30, and biodiesel is now cheaper than conventional diesel.
Expanded domestic biodiesel demand absorbs palm oil that would otherwise be exported, supporting palm oil prices, though infrastructure constraints slow the transition.
After 548 past bullish policy events, Palm Oil moved a median +0.4% over 5 sessions (61% higher; middle half -0.7% to +2.1%), and +0.9% over 20.
After 27 past neutral policy events, ULSD / Diesel moved a median -1.4% over 5 sessions (41% higher; middle half -4.3% to +2.6%), and -4.6% over 20.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.