Jakarta. Palm oil prices edged lower on Wednesday but remained within a narrow range as markets weighed stronger output in Malaysia against steady biofuel demand in Indonesia.

Benchmark palm oil futures in Malaysia settled at 4,126 ringgit ($868) per tonne on Nov. 12, down 0.31 percent from the previous day. Prices have fallen 8.23 percent over the past month and are 17.22 percent lower than a year ago, according to trading on contracts for difference (CFD) that track the benchmark market.

Earlier on Tuesday, Malaysian palm oil futures rebounded around 1.5 percent to above 4,150 ringgit per tonne, supported by gains in rival edible oils traded on the Dalian and Chicago exchanges. Traders also cited bargain hunting after prices hit a four-month low last week. Research firm Glenauk Economics expects palm oil prices to stay firm between 4,300 ringgit and 4,600 ringgit in the first half of 2026, pointing to potential delays in the industry’s peak production cycle.

However, a stronger ringgit capped further advances, while weather risks loomed as the northeast monsoon was forecast to begin on Thursday and persist through March 2026. Data from the Malaysian Palm Oil Board showed end-October inventories at a six-and-a-half-year high, while production rose 11.02 percent, the highest since August 2015. Exports, meanwhile, declined 9.5–12.3 percent during November 1–10, according to cargo surveyors.

In Indonesia, the world’s top palm oil producer, the government continues to drive biofuel expansion to support domestic demand. State-owned energy firm Pertamina said it supports developing bioethanol from various feedstocks, including the sugar palm, as part of efforts to diversify the nation’s bioenergy sources beyond crude palm oil (CPO).

Indonesia’s Energy and Mineral Resources Ministry reported that biodiesel distribution reached 12.11 million kiloliters as of Nov. 6, or 77.8 percent of its 2025 target of 15.6 million kiloliters. National biodiesel capacity currently stands at 22 million kiloliters, supplied by 28 plants and 25 biofuel producers. The government estimates that the B40 program, which blends 40 percent CPO into subsidized diesel, has saved Rp 107.2 trillion in foreign exchange this year.

Meanwhile, state-owned PalmCo, a sub-holding of state plantation company PTPN, said its crude palm oil output rose 3.6 percent year-on-year to 2.2 million tonnes through October, driven by higher mill efficiency and improved field operations.