# Indonesia's B40 palm oil delay causes market uncertainty | Reuters

> 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.

- Date: 2025-01-02 · published 2025-01-02T12:00:00.000Z
- Category: policy · region Indonesia · magnitude medium
- Page: https://feedsoft.ai/events/5045-indonesia-s-b40-palm-oil-delay-causes-market-uncertainty-reuters
- Commodities: [Palm Oil](https://feedsoft.ai/c/PALMOIL.md)

## Why it matters

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.

## Read by commodity

- PALMOIL: bearish ▼

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| PALMOIL | 2025-01-02 | 1 | -10.9% | -7.6 | 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. |
| PALMOIL | 2025-01-06 | 5 | -11.3% | -4.9 | Indonesia's delayed B40 biodiesel start removed expected domestic palm demand, triggering a 2.5% sell-off on Jan 2 (sentiment/demand). |
| PALMOIL | 2025-01-03 | 5 | -10.5% | -5.3 | Reuters confirms the 2.5% close lower after B40 uncertainty (technical regulations pending), a key sentiment and demand driver. |

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| PALMOIL | 2021-09-13 | [High palm oil prices delay Indonesia’s B40 plans](https://feedsoft.ai/events/44939-high-palm-oil-prices-delay-indonesia-s-b40-plans.md) | +0.8% | +13.3% |
| PALMOIL | 2025-01-02 | [Palm oil ends lower after news on Indonesia’s B40 delay - Markets - Business Recorder](https://feedsoft.ai/events/5046-palm-oil-ends-lower-after-news-on-indonesia-s-b40-delay-markets-business.md) | -10.6% | -10.3% |
| PALMOIL | 2018-01-18 | [Indonesia, Malaysia condemn European move to limit palm oil use \| Reuters](https://feedsoft.ai/events/67074-indonesia-malaysia-condemn-european-move-to-limit-palm-oil-use-reuters.md) | +0.5% | -0.0% |
| PALMOIL | 2022-05-19 | [Indonesia president declares end of palm oil export ban from Monday \| Reuters](https://feedsoft.ai/events/41501-indonesia-president-declares-end-of-palm-oil-export-ban-from-monday-reuters.md) | +1.4% | -7.4% |
| PALMOIL | 2026-02-11 | [Indonesia biodiesel pause, rising output seen limiting palm oil gains \| Reuters](https://feedsoft.ai/events/15489-indonesia-biodiesel-pause-rising-output-seen-limiting-palm-oil-gains-reuters.md) | -0.8% | +7.3% |

## Sources

- reuters.com: https://www.reuters.com/markets/commodities/indonesias-palm-oil-b40-delay-causes-market-uncertainties-2025-01-02/

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