CPO Futures Close Lower On Delay In Indonesia's B50 Biodiesel Plan

By Muhammad Fawwaz Thaqif Nor Afandi and Abdul Hamid A Rahman

KUALA LUMPUR, Jan 15 (Bernama) -- Crude palm oil (CPO) futures on Bursa Malaysia Derivatives ended lower today, dragged by Indonesia’s decision to delay the introduction of its B50 biodiesel mandate.

Mumbai-based Sunvin Group commodity research head Anilkumar Bagani said Indonesia has scrapped plans to increase the mandatory biodiesel blend to 50 per cent this year, maintaining the current mix of 40 per cent palm oil-based fuel and 60 per cent diesel.

“This is relatively bearish news for local palm oil, along with the Indonesian government’s plan to raise (CPO export) levies by 2.5 percentage points, instead of the previously anticipated five percentage points,” he told Bernama.

Kuala Lumpur-based Iceberg X Sdn Bhd proprietary trader David Ng said market sentiment was also pressured by weaker soybean oil prices on the Chicago Board of Trade (CBOT) and crude oil prices.

High CPO stock levels continued to weigh on sentiment, he said.

“These factors have reduced the upside momentum, with buyers also remaining on the sidelines amid lingering oversupply concerns,” he added.

At the close, the January 2026 contract was unchanged at RM3,950 per tonne, February 2026 slipped RM39 to RM3,961 per tonne, and March 2026 fell RM60 to RM3,980 per tonne. 

The April 2026 contract eased by RM69 to RM3,990 per tonne, May 2026 dropped RM72 to RM3,997 per tonne, and June 2026 reduced RM68 to RM3,998 per tonne.

Trading volume surged to 147,837 lots from 91,936 lots on Wednesday, while open interest grew to 259,206 contracts from 257,760 contracts previously.

The physical CPO price for January South decreased by RM40 to RM3,990 per tonne.

-- BERNAMA