Palm Oil Steady on U.S. Shutdown End, Indonesia Biodiesel Outlook
Malaysian palm oil futures were little changed, holding around MYR 4,120 per tonne after modest losses in the previous session. Sentiment improved after U.S. President Donald Trump signed legislation ending the longest government shutdown in U.S. history. On the Dalian exchange, the most-active soyoil contract edged higher while palm oil futures slipped. Regarding production, analysts expect November output to remain elevated, supported by peak production in East Malaysia. Meantime, end-of-month inventories are projected to stay flat or rise slightly after hitting a 6-1/2-year high in October. So far this week, prices have edged higher, rebounding from three sessions of losses, amid expectations that top producer Indonesia may raise its biodiesel mandate to 50% from 40% by H2 2026. In the longer term, Jakarta also plans to implement mandatory ethanol blending in fuel by 2028 to reduce reliance on imported petroleum.
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