Malaysian Palm Oil Futures Rise on US Biofuel Quotas Finalization Plans
Malaysian palm oil futures rose by 2.03% to 4,071 ringgit per metric ton, driven by gains in soybean oil and anticipated U.S. biofuel quotas for 2026. The U.S. plans to increase biofuel blending volumes and has removed penalties on renewable fuel imports, which, along with a weaker ringgit and rising crude oil prices, is expected to boost Malaysian palm oil exports by 17.5% to 18.6% for early January.
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Malaysian palm oil futures increased by 2.03% to 4,071 ringgit per metric ton, marking a second weekly gain. This rise is attributed to gains in soybean oil amid U.S. plans to finalize 2026 biofuel quotas, expected by March.
The U.S. aims to increase total biofuel blending volumes and has dropped penalties on renewable fuel imports. Malaysian palm oil exports are projected to rise between 17.5% and 18.6% for January 1-15. The ringgit weakened by 0.07% against the dollar, making palm oil cheaper for foreign buyers. Crude oil prices have also risen, enhancing palm oil's attractiveness for biodiesel.
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