Indonesia: Palm Oil Prices Rise on Firm Biodiesel Demand, Slowing Output

Crude palm oil (CPO) prices climbed to 4,520 ringgit (US$974) per ton on Monday, up 0.53 percent from the previous day, as tighter supply expectations and Indonesia’s expanding biodiesel mandate continued to support the market. The benchmark price has gained 1.69 percent over the past month and is 5.9 percent higher than a year ago, according to data from Trading Economics. Hong Leong Investment Bank (HLIB) said in a research note that it is maintaining its 2025–2026 CPO price assumptions at 4,300 ringgit and 4,200 ringgit per ton, respectively. “If the latest production figures are any indication, palm oil stock levels may have reached their peak in September and are expected to begin trending lower from October, supporting our view of firm CPO prices in the near to medium term,” HLIB said. Industry data showed Malaysia’s end-September inventories rose 7.2 percent month-on-month to 2.36 million tonnes, the highest in nearly two years, while output slipped 0.73 percent to 1.84 ...