Jakarta. Palm oil steadied above 4,200 ringgit (MYR) per tonne on Wednesday, extending a modest rebound as a weaker ringgit and firmer Dalian markets offered support, even as policy risks in Indonesia capped gains.

Benchmark futures rose 0.31 percent to 4,223 ringgit per tonne on Nov. 19, according to CFD pricing that tracks the global market. Prices are still down 6.45 percent over the past month and have fallen 12.33 percent from a year earlier, underscoring the commodity’s struggle to regain upward momentum after hitting a four-month low last week.

Market sentiment improved after Reuters reported that China’s state-owned trader COFCO booked at least 14 cargoes of US soybeans for December–January shipment, lifting Dalian edible oils and offering spillover support to palm. The weaker ringgit, which makes Malaysian exports more competitive, added to the positive sentiment.

Still, the upside remained limited after the Malaysian Palm Oil Board set a lower crude palm oil (CPO) reference price for December, while India, the world’s top importer, continued to pull back. Indian palm oil imports dropped to a five-month low in October as buyers shifted to soybean oil amid relatively high palm prices, pushing 2024/25 purchases down 16 percent to a five-year low of 7.56 million tonnes. Cargo surveyor data also showed Malaysian palm oil product shipments for Nov. 1–15 slid 10 percent to 15.5 percent from the previous month.

In Indonesia, the world’s largest producer, government policy added pressure, including ongoing land-reclamation measures and uncertainty around its biodiesel mandate. The government has reclaimed 3.4 million hectares of illegal plantations as of Oct. 1, with 1.5 million hectares now handed to state-owned Agrinas Palma Nusantara.

Indonesia is also preparing to upgrade its B40 biodiesel program to B50 in late 2026, a shift officials say could cut emissions by 41.46 million tons of CO₂e. The country also aims to roll out palm-based sustainable aviation fuel within two to three years, part of a broader plan to position the sector for long-term demand.

At last week’s 21st Indonesia Palm Oil Conference (IPOC) in Bali, the government reaffirmed its ambition to reach 100 million tonnes of CPO output by 2045. The roadmap calls for boosting productivity by 3.95 percent annually through replanting programs, and both upstream and downstream investment in processing capacity, alongside biofuel policies.

Indonesia is also nearing a tariff agreement with the United States that could eventually eliminate US import duties on palm oil. Chief Economic Affairs Minister Airlangga Hartarto said negotiations are now in the final phase, with both sides aiming to seal a deal before year-end. Earlier talks saw the US reduce its proposed tariff hike on several Indonesian products from 32 percent to 19 percent.  

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