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Malaysian palm oil futures for March delivery closed 2.5% lower on Thursday at 4,336 ringgit ($968.72) a metric ton, after rising about 1.8% earlier in the session. The move followed uncertainty over Indonesia's delayed B40 biodiesel blend, which was planned for January 1 but still awaited technical regulations.
Delayed mandatory biodiesel demand removes expected palm oil consumption from the domestic market, which weighs on Malaysian futures and export prices. Traders are repricing near-term palm demand until implementation rules are published.
reuters.comJan 2, 2025After 400 past bearish policy events, Palm Oil moved a median -0.0% over 5 sessions (49% higher; middle half -1.3% to +1.1%), and +0.2% 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.
Delay of Indonesia's B40 biodiesel mandate cut expected domestic palm oil demand, triggering a sell-off in Malaysian futures (-2.5%) on the move date.
Indonesia's delayed B40 biodiesel start removed expected domestic palm demand, triggering a 2.5% sell-off on Jan 2 (sentiment/demand).
Reuters confirms the 2.5% close lower after B40 uncertainty (technical regulations pending), a key sentiment and demand driver.
