Palm oil news. May 2026
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May 15, 2026
China’s consumer power is driving global green transformation
Multiple foreign media outlets have recently noticed that the Tianjin Meat Industry Association announced it would purchase 50,000 metric tons of deforestation free certified Brazilian beef by the end of the year. This move not only sends a positive signal for the protection of the Amazon rainforest, but also demonstrates the profound impact of China's green consumption demand on global supply chains.
This case reflects a broader shift: in the global wave of green and low-carbon transformation, China is moving from a production-driven green development model to a new stage driven by both production and consumption.
Chinese consumers' demand for green, safe and traceable products continues to rise. Supported by policy guidance, corporate responsibility and industry certification, this trend is reshaping the domestic market while deeply empowering the global green supply chain and injecting strong momentum into the world economy's green recovery and sustainable development.
For a long time, global green development has focused mainly on emission reductions and technological innovation on the production side, while the guiding role of consumption has often been overlooked. Now, the rise of green consumption in China is breaking this limitation and promoting a new pattern of "production-consumption" mutual reinforcement.
From Brazilian beef and South American soybeans to Southeast Asian palm oil and other global commodities, China's green procurement standards are becoming a new guiding force in international trade. In sectors such as soybeans and palm oil, China's demand for green, deforestation free and traceable products is pushing exporting countries to adjust their production models, reduce deforestation and improve resource efficiency.
This shift means that consumption is no longer merely the passive endpoint of production. It has become the starting point of green supply chains. It truly enables production and consumption to act as two mutually reinforcing wheels driving global green development, fully embodying the core essence of accelerating the comprehensive green transformation of economic and social development.
The vigorous rise of green consumption in China results from the synergy between policy guidance and market-driven demand. On the policy front, China continues to improve its green development institutional framework. On the market front, Chinese consumers' mindset has undergone a fundamental change - shifting from "price-first" to prioritizing "green, safe and traceable" values. This is not a short-term trend but a profound transformation in consumption concepts and lifestyles, becoming a core market force driving the upgrade of global green supply chains.
The rise of green consumption in China not only injects green momentum into the country's high-quality economic development, but has also become a vital engine for addressing global economic imbalances and driving a new round of green growth worldwide.
For China, green consumption is acting as a powerful force to push industrial green transformation. It encourages enterprises to increase investment in green technology research and development, optimize production processes, and improve traceability systems. From the rapid expansion of emerging industries such as new energy and energy-saving environmental protection, to the accelerated green upgrading of traditional industries, green consumption has helped foster a green industry sector with a market scale reaching trillions of yuan. This provides key support for optimizing the economic structure and cultivating new quality productive forces.
For the world, as the world's second-largest economy and one of the largest import markets, China's growing green consumption offers vast opportunities for green products from all countries. Resource-exporting countries like Brazil and Southeast Asia are actively reducing deforestation and adopting sustainable practices to meet Chinese standards, achieving a win-win for ecological protection and economic growth. At the same time, green technologies and eco-friendly products from developed countries gain broader application. More importantly, the sustainable philosophy promoted by China's green consumption is reshaping global trade rules and helping establish green standards and traceability systems as international norms.
From policy guidance to market awakening, and from corporate practice to industry standards, China's green consumption is forming a multi-dimensional collaborative ecosystem. This not only ensures steady progress in China's own green development but also leverages Chinese consumer power to drive global green transformation.
The author is director and professor of the Research Center for Environmental Economics, Fudan University. globaltimes.com.cn
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Malaysia strengthens palm oil ties with China
KUCHING (May 15): Malaysia has strengthened cooperation with China’s palm oil industry through a series of strategic engagements led by Minister of Plantation and Commodities Datuk Seri Dr Noraini Ahmad during a four day working visit to Shanghai.
The programme, coordinated by the Malaysian Palm Oil Council (MPOC), included the MPOF China 2026 forum and meetings with major industry players including COFCO Corporation, Yihai Kerry Arawana Food Group under Wilmar China, and Taiko Palm-Oleo (Zhangjiagang) Co Ltd.
Speaking during the engagements, Noraini said China remained an important market and manufacturing hub for the global oils and fats industry.
“Malaysia sees strong opportunities to further strengthen collaboration with Chinese industry players across downstream processing, specialty applications, and sustainable supply chain development,” she said.
She added that closer cooperation between Malaysian suppliers and Chinese manufacturers would support innovation and create growth opportunities for palm-based products in high growth sectors.
Discussions with COFCO Corporation focused on long term supply cooperation, downstream applications, market developments and sustainability collaboration involving Malaysia’s palm oil exports to China’s food manufacturing sector.
The minister also attended a briefing at the Yihai Kerry Research and Development Center in Shanghai, where discussions centred on specialty fats, food innovation and evolving consumer demand in China.
Noraini said the expansion of specialty fats and food innovation in China presented opportunities for stronger collaboration between Malaysian palm oil suppliers and Chinese manufacturers, particularly in innovation driven segments.
At Taiko Palm-Oleo (Zhangjiagang) Co Ltd, discussions focused on demand growth for palm based oleochemicals used in personal care, pharmaceuticals, food manufacturing and industrial applications, as well as sustainability and traceability requirements within supply chains.
“The continued growth of downstream oleochemical manufacturing in China reflects expanding opportunities for Malaysia to strengthen its presence in industrial and higher value downstream sectors,” Noraini said.
MPOC said the programme reflected Malaysia’s continued efforts to strengthen long term partnerships with China and expand collaboration across innovation driven sectors. Borneo Post
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Iran war energy shock drives interest in ethanol and other biofuels across hard-hit Asia
Nations across Asia are pushing for the use of more biofuels in transportation in order to slash dependence on imported fossil fuels, which have been disrupted by the Iran war
BENGALURU, India — Taxi driver Ravi Ranjan, who lives with his wife and child in New Delhi, said shipping disruptions caused by the Iran war have forced him to pay higher prices for cooking fuel at a time when India’s prime minister is also urging residents to reduce driving and travel.
It’s all hitting Ranjan’s bottom line, he said, as he’s paying three times as much for liquid petroleum gas after facing delays on delivery of the cooking fuel.
“I used to get a cylinder of LPG for 1,000 rupees ($11), now I pay 3,000 rupees ($31) in the black market,” he said.
On the other side of the country, in the coastal city of Chennai, Sushmita Sankar, an advertising executive, said her gasoline and cooking fuel expenses are skyrocketing because of the war. Sankar said gasoline blended with ethanol — the default mix available at fuel stations now — is also worsening her car’s mileage.
“Fuel expenses are increasing and with only ethanol mixed petrol available, I feel my car’s mileage has reduced in the last year or so,” she said. “Already our days are busy with work and taking care of our child’s school and other needs. Having to now spend a lot of time to fill my car or buy LPG is making things even more hectic.”
Against the backdrop of cooking gas shortages and crude oil price increases, India has proposed letting vehicles run on 85%, or even 100%, ethanol. On Friday, India increased its petrol and diesel prices and local news outlets reported panic buying leading to long queues in India’s Odisha state. India has also banned all exports of sugar at least through September to ensure a local supply of sugar, but also to ensure enough raw material is available if ethanol blending levels are to be increased.
The government claims more ethanol will reduce vehicle pollution, but drivers have concerns about mileage. Environmental experts also say that producing corn, rice and other grains for ethanol can take away from food and livestock needs. Washington Post
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Biofuel boom shatters longheld link between soy and palm oil
KUALA LUMPUR (May 15): Biofuel demand is running hot, pushing soybean oil to a historic premium over its closest crop rival, palm oil.
It’s a rare divergence between prices of the world’s two most-consumed vegetable oils, as aggressive US biofuel blending mandates transform soy oil from a food staple into a crucial feedstock for energy.
While the war in the Middle East has boosted palm’s appeal as a biofuel feedstock as well, the tropical oil has come under pressure in recent weeks following softer demand from top buyer India, as well seasonally-higher production in key growers Indonesia and Malaysia.
Chicago soy oil prices have rallied more than 50% this year. Benchmark palm oil futures in Kuala Lumpur, meanwhile, are only up around 10%.
Historically, trading between soy oil and palm oil has been largely aligned, with prices driven by food demand and substitution between the two rivals. A higher premium for soy oil would typically encourage buyers to switch to cheaper palm oil, which in turn would narrow the spread. That relationship is now disintegrating as a growing share of US soy oil becomes tied to fuel and demand grows.
Soy oil traded at a premium of US$507 (RM2,002.40) over palm on Friday, the widest since October 2023, according to data compiled by Bloomberg. That compares to just US$73 at the start of the year.
“Right now, you can’t compare between the two,” according to Budiman Suwardi, head of treasury and markets at Prime EcoHarvest Commodities. “Soy oil prices in the US are going to be supported by US renewable fuel mandates, which will need huge volumes of soy oil, while Malaysian palm futures are moving on the Asian biodiesel story and demand for cooking oil.” Bloomberg/ The Edge
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New Crop Soybeans Top $12 as USDA Raises Demand Outlook
USDA’s forecasts for both domestic and international soybean production and consumption for both the current 2025/26 and upcoming 2026/27 marketing year sent soy prices headed in one direction on Tuesday: higher.
USDA published its first look at 2026/27 marketing year production, supply and demand estimates in the May 2026 World Agricultural Supply and Demand Estimates (WASDE) report Tuesday, while also revising 2025/26 estimates. It was a bullish report for soybean prices, fueled primarily by growing domestic and global usage forecasts.
The new marketing year estimates were welcomed warmly by the markets, as new crop November 2026 soybean futures prices surged to a three-year high above the $12/bu. benchmark following the report’s release. The contract ended Tuesday’s trading session $0.09/bu. (0.8%) higher at $12.0375/bu., aided in large part by growing global consumption of vegetable oils.
Old crop futures prices for soybeans also saw a boost thanks to rising crush forecasts. July 2026 soybean futures prices climbed to a two-month high of $12.2675/bu. Following WASDE’s release, closing Tuesday’s trading session $0.1225/bu. (1%) higher.
A rally in the energy markets also lent strength to both old and new crop futures prices for the soy complex following WASDE’s publication. The energy market spillover strength from Persian Gulf tensions will likely play a key role in production dynamics for the soy industry in the months ahead.
USDA expects high crush volumes will continue to support soybean prices, projecting 2026/27 average farm prices at $11.40/bu. The same sentiment prompted USDA to also increase 2025/26 average farm prices by a dime from last month to $10.40/bu.
The higher prices will reduce market losses for growers in both the 2025/26 and 2026/27 marketing years but are not high enough to completely offset rapid increases in input costs. As a result, profit margins are likely in the red for soybean growers for another year.
Old crop revisions CRUSH it
USDA lowered 2025/26 U.S. export volumes by 10 million bushels, dropping the total to a 1.53 billion bushels. It is the smallest marketing year soybean export volume since the 2012/13 marketing year, which saw reduced shipments due to an historic drought.
USDA offset the lower export usage rate by adding 20 million bushels to 2025/26 U.S. soybean crush forecasts, bringing the current crush rate to 2.63 billion bushels. Across the Heartland, crush margins have hit multi-year year highs over the past month, with the Chicago board crush notching a new record high May 5. The rising margins and rapid consumption of soy products are the driver of the larger crush estimate.
2025/26 soybean oil production increased 345 million pounds to 30.675 billion pounds. The added supplies will increase consumption by biomass-based diesel by 200 million pounds, bringing the marketing year total to 14.2 billion pounds. Consumption of soybean oil for food, feed and other industrial uses rose 130 million pounds to 15.48 billion pounds.
While 2025/26 soybean oil ending stocks grew 15 million pounds, the rapid growth in usage more than offset the additional supplies. Rising consumption forecasts prompted USDA to raise 2025/26 season average soybean oil prices by $0.04/lb. to $0.63/lb.
Similarly, 2025/26 soymeal production was revised 750,000 short tons higher to 62.627 million short tons. The additional soymeal stocks are expected to be completely consumed by a 400,000-short-ton increase in soymeal exports and a 350,000-short-ton increase in domestic consumption, bringing those marketing year totals to 19.8 million and 43.575 million short tons, respectively.
With usage rates trending hotter for soymeal, in addition to soybean oil, USDA added $5/ton to season average soymeal prices, bringing the 2025/26 total to $315/ton.
Even as export volumes hover at 13-year lows, soybean prices are increasingly gaining strength from rising demand for soybean oil and soymeal end products. USDA expects demand for these co-products will be a central theme to new crop 2026/27 pricing dynamics.
New crop forecasts
Assuming March 31 Prospective Planting estimates of 84.7 million acres of soybeans for 2026 and a trendline yield of 53.0 bushels per acre (bpa), USDA forecasts 2026 U.S. soybean production at 4.435 billion bushels. If realized, it will be the second largest crop harvested by U.S. soybean producers, trailing only 2021’s record haul of 4.464 billion bushels.
But 2025/26 trend of rising domestic crush volumes and end product usage will continue into the new crop 2026/27 marketing year. A 120-million-bushel increase in crush volumes and 100 million added bushels to revived export demand will tighten 2026/27 ending stocks to 310 million bushels. Soy Growers
China’s consumer power is driving global green transformation
Multiple foreign media outlets have recently noticed that the Tianjin Meat Industry Association announced it would purchase 50,000 metric tons of deforestation free certified Brazilian beef by the end of the year. This move not only sends a positive signal for the protection of the Amazon rainforest, but also demonstrates the profound impact of China's green consumption demand on global supply chains.
This case reflects a broader shift: in the global wave of green and low-carbon transformation, China is moving from a production-driven green development model to a new stage driven by both production and consumption.
Chinese consumers' demand for green, safe and traceable products continues to rise. Supported by policy guidance, corporate responsibility and industry certification, this trend is reshaping the domestic market while deeply empowering the global green supply chain and injecting strong momentum into the world economy's green recovery and sustainable development.
For a long time, global green development has focused mainly on emission reductions and technological innovation on the production side, while the guiding role of consumption has often been overlooked. Now, the rise of green consumption in China is breaking this limitation and promoting a new pattern of "production-consumption" mutual reinforcement.
From Brazilian beef and South American soybeans to Southeast Asian palm oil and other global commodities, China's green procurement standards are becoming a new guiding force in international trade. In sectors such as soybeans and palm oil, China's demand for green, deforestation free and traceable products is pushing exporting countries to adjust their production models, reduce deforestation and improve resource efficiency.
This shift means that consumption is no longer merely the passive endpoint of production. It has become the starting point of green supply chains. It truly enables production and consumption to act as two mutually reinforcing wheels driving global green development, fully embodying the core essence of accelerating the comprehensive green transformation of economic and social development.
The vigorous rise of green consumption in China results from the synergy between policy guidance and market-driven demand. On the policy front, China continues to improve its green development institutional framework. On the market front, Chinese consumers' mindset has undergone a fundamental change - shifting from "price-first" to prioritizing "green, safe and traceable" values. This is not a short-term trend but a profound transformation in consumption concepts and lifestyles, becoming a core market force driving the upgrade of global green supply chains.
The rise of green consumption in China not only injects green momentum into the country's high-quality economic development, but has also become a vital engine for addressing global economic imbalances and driving a new round of green growth worldwide.
For China, green consumption is acting as a powerful force to push industrial green transformation. It encourages enterprises to increase investment in green technology research and development, optimize production processes, and improve traceability systems. From the rapid expansion of emerging industries such as new energy and energy-saving environmental protection, to the accelerated green upgrading of traditional industries, green consumption has helped foster a green industry sector with a market scale reaching trillions of yuan. This provides key support for optimizing the economic structure and cultivating new quality productive forces.
For the world, as the world's second-largest economy and one of the largest import markets, China's growing green consumption offers vast opportunities for green products from all countries. Resource-exporting countries like Brazil and Southeast Asia are actively reducing deforestation and adopting sustainable practices to meet Chinese standards, achieving a win-win for ecological protection and economic growth. At the same time, green technologies and eco-friendly products from developed countries gain broader application. More importantly, the sustainable philosophy promoted by China's green consumption is reshaping global trade rules and helping establish green standards and traceability systems as international norms.
From policy guidance to market awakening, and from corporate practice to industry standards, China's green consumption is forming a multi-dimensional collaborative ecosystem. This not only ensures steady progress in China's own green development but also leverages Chinese consumer power to drive global green transformation.
The author is director and professor of the Research Center for Environmental Economics, Fudan University. globaltimes.com.cn
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Malaysia strengthens palm oil ties with China
KUCHING (May 15): Malaysia has strengthened cooperation with China’s palm oil industry through a series of strategic engagements led by Minister of Plantation and Commodities Datuk Seri Dr Noraini Ahmad during a four day working visit to Shanghai.
The programme, coordinated by the Malaysian Palm Oil Council (MPOC), included the MPOF China 2026 forum and meetings with major industry players including COFCO Corporation, Yihai Kerry Arawana Food Group under Wilmar China, and Taiko Palm-Oleo (Zhangjiagang) Co Ltd.
Speaking during the engagements, Noraini said China remained an important market and manufacturing hub for the global oils and fats industry.
“Malaysia sees strong opportunities to further strengthen collaboration with Chinese industry players across downstream processing, specialty applications, and sustainable supply chain development,” she said.
She added that closer cooperation between Malaysian suppliers and Chinese manufacturers would support innovation and create growth opportunities for palm-based products in high growth sectors.
Discussions with COFCO Corporation focused on long term supply cooperation, downstream applications, market developments and sustainability collaboration involving Malaysia’s palm oil exports to China’s food manufacturing sector.
The minister also attended a briefing at the Yihai Kerry Research and Development Center in Shanghai, where discussions centred on specialty fats, food innovation and evolving consumer demand in China.
Noraini said the expansion of specialty fats and food innovation in China presented opportunities for stronger collaboration between Malaysian palm oil suppliers and Chinese manufacturers, particularly in innovation driven segments.
At Taiko Palm-Oleo (Zhangjiagang) Co Ltd, discussions focused on demand growth for palm based oleochemicals used in personal care, pharmaceuticals, food manufacturing and industrial applications, as well as sustainability and traceability requirements within supply chains.
“The continued growth of downstream oleochemical manufacturing in China reflects expanding opportunities for Malaysia to strengthen its presence in industrial and higher value downstream sectors,” Noraini said.
MPOC said the programme reflected Malaysia’s continued efforts to strengthen long term partnerships with China and expand collaboration across innovation driven sectors. Borneo Post
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Iran war energy shock drives interest in ethanol and other biofuels across hard-hit Asia
Nations across Asia are pushing for the use of more biofuels in transportation in order to slash dependence on imported fossil fuels, which have been disrupted by the Iran war
BENGALURU, India — Taxi driver Ravi Ranjan, who lives with his wife and child in New Delhi, said shipping disruptions caused by the Iran war have forced him to pay higher prices for cooking fuel at a time when India’s prime minister is also urging residents to reduce driving and travel.
It’s all hitting Ranjan’s bottom line, he said, as he’s paying three times as much for liquid petroleum gas after facing delays on delivery of the cooking fuel.
“I used to get a cylinder of LPG for 1,000 rupees ($11), now I pay 3,000 rupees ($31) in the black market,” he said.
On the other side of the country, in the coastal city of Chennai, Sushmita Sankar, an advertising executive, said her gasoline and cooking fuel expenses are skyrocketing because of the war. Sankar said gasoline blended with ethanol — the default mix available at fuel stations now — is also worsening her car’s mileage.
“Fuel expenses are increasing and with only ethanol mixed petrol available, I feel my car’s mileage has reduced in the last year or so,” she said. “Already our days are busy with work and taking care of our child’s school and other needs. Having to now spend a lot of time to fill my car or buy LPG is making things even more hectic.”
Against the backdrop of cooking gas shortages and crude oil price increases, India has proposed letting vehicles run on 85%, or even 100%, ethanol. On Friday, India increased its petrol and diesel prices and local news outlets reported panic buying leading to long queues in India’s Odisha state. India has also banned all exports of sugar at least through September to ensure a local supply of sugar, but also to ensure enough raw material is available if ethanol blending levels are to be increased.
The government claims more ethanol will reduce vehicle pollution, but drivers have concerns about mileage. Environmental experts also say that producing corn, rice and other grains for ethanol can take away from food and livestock needs. Washington Post
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Biofuel boom shatters longheld link between soy and palm oil
KUALA LUMPUR (May 15): Biofuel demand is running hot, pushing soybean oil to a historic premium over its closest crop rival, palm oil.
It’s a rare divergence between prices of the world’s two most-consumed vegetable oils, as aggressive US biofuel blending mandates transform soy oil from a food staple into a crucial feedstock for energy.
While the war in the Middle East has boosted palm’s appeal as a biofuel feedstock as well, the tropical oil has come under pressure in recent weeks following softer demand from top buyer India, as well seasonally-higher production in key growers Indonesia and Malaysia.
Chicago soy oil prices have rallied more than 50% this year. Benchmark palm oil futures in Kuala Lumpur, meanwhile, are only up around 10%.
Historically, trading between soy oil and palm oil has been largely aligned, with prices driven by food demand and substitution between the two rivals. A higher premium for soy oil would typically encourage buyers to switch to cheaper palm oil, which in turn would narrow the spread. That relationship is now disintegrating as a growing share of US soy oil becomes tied to fuel and demand grows.
Soy oil traded at a premium of US$507 (RM2,002.40) over palm on Friday, the widest since October 2023, according to data compiled by Bloomberg. That compares to just US$73 at the start of the year.
“Right now, you can’t compare between the two,” according to Budiman Suwardi, head of treasury and markets at Prime EcoHarvest Commodities. “Soy oil prices in the US are going to be supported by US renewable fuel mandates, which will need huge volumes of soy oil, while Malaysian palm futures are moving on the Asian biodiesel story and demand for cooking oil.” Bloomberg/ The Edge
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New Crop Soybeans Top $12 as USDA Raises Demand Outlook
USDA’s forecasts for both domestic and international soybean production and consumption for both the current 2025/26 and upcoming 2026/27 marketing year sent soy prices headed in one direction on Tuesday: higher.
USDA published its first look at 2026/27 marketing year production, supply and demand estimates in the May 2026 World Agricultural Supply and Demand Estimates (WASDE) report Tuesday, while also revising 2025/26 estimates. It was a bullish report for soybean prices, fueled primarily by growing domestic and global usage forecasts.
The new marketing year estimates were welcomed warmly by the markets, as new crop November 2026 soybean futures prices surged to a three-year high above the $12/bu. benchmark following the report’s release. The contract ended Tuesday’s trading session $0.09/bu. (0.8%) higher at $12.0375/bu., aided in large part by growing global consumption of vegetable oils.
Old crop futures prices for soybeans also saw a boost thanks to rising crush forecasts. July 2026 soybean futures prices climbed to a two-month high of $12.2675/bu. Following WASDE’s release, closing Tuesday’s trading session $0.1225/bu. (1%) higher.
A rally in the energy markets also lent strength to both old and new crop futures prices for the soy complex following WASDE’s publication. The energy market spillover strength from Persian Gulf tensions will likely play a key role in production dynamics for the soy industry in the months ahead.
USDA expects high crush volumes will continue to support soybean prices, projecting 2026/27 average farm prices at $11.40/bu. The same sentiment prompted USDA to also increase 2025/26 average farm prices by a dime from last month to $10.40/bu.
The higher prices will reduce market losses for growers in both the 2025/26 and 2026/27 marketing years but are not high enough to completely offset rapid increases in input costs. As a result, profit margins are likely in the red for soybean growers for another year.
Old crop revisions CRUSH it
USDA lowered 2025/26 U.S. export volumes by 10 million bushels, dropping the total to a 1.53 billion bushels. It is the smallest marketing year soybean export volume since the 2012/13 marketing year, which saw reduced shipments due to an historic drought.
USDA offset the lower export usage rate by adding 20 million bushels to 2025/26 U.S. soybean crush forecasts, bringing the current crush rate to 2.63 billion bushels. Across the Heartland, crush margins have hit multi-year year highs over the past month, with the Chicago board crush notching a new record high May 5. The rising margins and rapid consumption of soy products are the driver of the larger crush estimate.
2025/26 soybean oil production increased 345 million pounds to 30.675 billion pounds. The added supplies will increase consumption by biomass-based diesel by 200 million pounds, bringing the marketing year total to 14.2 billion pounds. Consumption of soybean oil for food, feed and other industrial uses rose 130 million pounds to 15.48 billion pounds.
While 2025/26 soybean oil ending stocks grew 15 million pounds, the rapid growth in usage more than offset the additional supplies. Rising consumption forecasts prompted USDA to raise 2025/26 season average soybean oil prices by $0.04/lb. to $0.63/lb.
Similarly, 2025/26 soymeal production was revised 750,000 short tons higher to 62.627 million short tons. The additional soymeal stocks are expected to be completely consumed by a 400,000-short-ton increase in soymeal exports and a 350,000-short-ton increase in domestic consumption, bringing those marketing year totals to 19.8 million and 43.575 million short tons, respectively.
With usage rates trending hotter for soymeal, in addition to soybean oil, USDA added $5/ton to season average soymeal prices, bringing the 2025/26 total to $315/ton.
Even as export volumes hover at 13-year lows, soybean prices are increasingly gaining strength from rising demand for soybean oil and soymeal end products. USDA expects demand for these co-products will be a central theme to new crop 2026/27 pricing dynamics.
New crop forecasts
Assuming March 31 Prospective Planting estimates of 84.7 million acres of soybeans for 2026 and a trendline yield of 53.0 bushels per acre (bpa), USDA forecasts 2026 U.S. soybean production at 4.435 billion bushels. If realized, it will be the second largest crop harvested by U.S. soybean producers, trailing only 2021’s record haul of 4.464 billion bushels.
But 2025/26 trend of rising domestic crush volumes and end product usage will continue into the new crop 2026/27 marketing year. A 120-million-bushel increase in crush volumes and 100 million added bushels to revived export demand will tighten 2026/27 ending stocks to 310 million bushels. Soy Growers
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May 14, 2026
India's vegetable oil imports jump 13 per cent in first half of 2025-26 on palm oil surge
New Delhi: India's vegetable oil imports rose 13 per cent to 7.94 million tonnes in the first six months of the 2025-26 oil year, driven by a sharp surge in palm oil shipments, industry body the Solvent Extractors Association of India (SEA) said on Wednesday.
The world's largest cooking oil consumer imported 7.04 million tonnes in the same period a year earlier. India's oil year runs from November to October.
In value terms, imports for the November-April period climbed 19 per cent to Rs 87,000 crore up from Rs 73,000 crore a year-ago.
Of the total imports, edible oils accounted for 7.82 million tonnes and non-edible oils for 121,000 tonnes, SEA said in a statement.
Palm oil imports nearly doubled to 3.97 million tonnes from 2.74 million tonnes a year earlier, while soft oil shipments, which include soybean and sunflower oils, fell to 3.85 million tonnes from 4.13 million tonnes.
Indonesia and Malaysia are the primary suppliers of palm oil to India. Argentina is the largest supplier of soybean oil, followed by Brazil, while Russia and Ukraine are the main sources of sunflower oil.
Cooking oil prices rose sharply over the past year, with palm oil prices up 14-15 per cent compared with April 2025 levels. Soybean oil and sunflower oil prices increased between 17 per cent and 22 per cent over the same period. Economic Times
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Indonesia Mulls Incentives for Palm Oil Investors
Jakarta. Indonesia is considering introducing incentives to draw capital into its palm oil sector as the country wants to move away from raw commodity export.Indonesian market analysis
In a recent conference with foreign ambassadors, Finance Minister Purbaya Yudhi Sadewa said that Indonesia had been doing its best to make the country investor-friendly. These "structural reforms" will possibly extend to the palm oil sector, some aimed at drawing capital into the production of higher-value products.
“In the future, we will probably provide some taxes on raw crude palm oil [CPO] export and incentives for the downstream palm oil products,” Purbaya told the forum in Jakarta on Tuesday.
“We invite companies from your area to invest in my country to produce [more sophisticated] products based on CPO.”
Investors have displayed quite an appetite for Indonesia’s palm oil sector. The government estimated that Indonesia had amassed around Rp 18.3 trillion (approximately $1 billion) in investments meant to help the country move up the palm oil value chain between January and March.
Indonesia did not say whether the money had come from domestic or foreign sources. Palm oil is in nearly everything, with this vegetable oil found in close to half of the packaged goods in supermarkets.
Indonesia has been banking on the so-called “debottlenecking task force” to address the problems that might come the investors’ way. Within six months of its establishment, the team claimed to have resolved problems that had hindered up to $30 billion worth of investments. Indonesian market analysis
Indonesia’s exports of CPO and its derivatives totaled $6.11 billion in Q1 2026, government data showed. The country is known to be the world’s largest palm oil supplier. Jakarta Globe
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India's vegetable oil imports jump 13 per cent in first half of 2025-26 on palm oil surge
New Delhi: India's vegetable oil imports rose 13 per cent to 7.94 million tonnes in the first six months of the 2025-26 oil year, driven by a sharp surge in palm oil shipments, industry body the Solvent Extractors Association of India (SEA) said on Wednesday.
The world's largest cooking oil consumer imported 7.04 million tonnes in the same period a year earlier. India's oil year runs from November to October.
In value terms, imports for the November-April period climbed 19 per cent to Rs 87,000 crore up from Rs 73,000 crore a year-ago.
Of the total imports, edible oils accounted for 7.82 million tonnes and non-edible oils for 121,000 tonnes, SEA said in a statement.
Palm oil imports nearly doubled to 3.97 million tonnes from 2.74 million tonnes a year earlier, while soft oil shipments, which include soybean and sunflower oils, fell to 3.85 million tonnes from 4.13 million tonnes.
Indonesia and Malaysia are the primary suppliers of palm oil to India. Argentina is the largest supplier of soybean oil, followed by Brazil, while Russia and Ukraine are the main sources of sunflower oil.
Cooking oil prices rose sharply over the past year, with palm oil prices up 14-15 per cent compared with April 2025 levels. Soybean oil and sunflower oil prices increased between 17 per cent and 22 per cent over the same period. Economic Times
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Indonesia Mulls Incentives for Palm Oil Investors
Jakarta. Indonesia is considering introducing incentives to draw capital into its palm oil sector as the country wants to move away from raw commodity export.Indonesian market analysis
In a recent conference with foreign ambassadors, Finance Minister Purbaya Yudhi Sadewa said that Indonesia had been doing its best to make the country investor-friendly. These "structural reforms" will possibly extend to the palm oil sector, some aimed at drawing capital into the production of higher-value products.
“In the future, we will probably provide some taxes on raw crude palm oil [CPO] export and incentives for the downstream palm oil products,” Purbaya told the forum in Jakarta on Tuesday.
“We invite companies from your area to invest in my country to produce [more sophisticated] products based on CPO.”
Investors have displayed quite an appetite for Indonesia’s palm oil sector. The government estimated that Indonesia had amassed around Rp 18.3 trillion (approximately $1 billion) in investments meant to help the country move up the palm oil value chain between January and March.
Indonesia did not say whether the money had come from domestic or foreign sources. Palm oil is in nearly everything, with this vegetable oil found in close to half of the packaged goods in supermarkets.
Indonesia has been banking on the so-called “debottlenecking task force” to address the problems that might come the investors’ way. Within six months of its establishment, the team claimed to have resolved problems that had hindered up to $30 billion worth of investments. Indonesian market analysis
Indonesia’s exports of CPO and its derivatives totaled $6.11 billion in Q1 2026, government data showed. The country is known to be the world’s largest palm oil supplier. Jakarta Globe
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May 13, 2026
Stronger palm oil demand seen in Malaysia, Indonesia despite export dip; supply concerns persist
April’s better-than-expected plantation output has raised hopes of a strong second quarter, even as a recent decline in exports is seen as temporary.
Analysts said demand for palm oil is likely to improve in the coming months, supported by policy changes in key producing countries. Malaysia is set to increase its biodiesel blend from B10 to B15 from June 1, while Indonesia plans to raise its B40 mandate further towards B50 from July 1. These moves are expected to boost consumption of palm oil.
At the same time, edible oil inventories in India are estimated to be 10 to 20 per cent lower than a year ago, adding to demand pressure, Focus Malaysia reported.
Global supplies of edible oils are expected to remain tight through 2026. There are also concerns that supply conditions could worsen in 2027 if a strong El Niño develops later this year. Supply worries had already emerged before tensions in the Middle East began, and rising energy prices since then have increased interest in biodiesel as an alternative fuel.
Countries such as Indonesia, Malaysia and Thailand are moving ahead with higher biodiesel blending targets. Once fully implemented, these measures could add demand of around three to four million metric tonnes of palm oil annually, roughly 10 per cent higher consumption.
While plantation companies are expected to face rising fertiliser and energy costs from the second half of 2026, the sector is still likely to benefit from higher crude palm oil (CPO) prices. Prices have risen from RM4,019 per metric tonne in January to RM4,568 in April, supported by steady demand growth of 3 to 4 per cent and increasing use in biodiesel.
The possibility of CPO prices remaining firm into 2027 is also rising due to the potential formation of a very strong El Niño. Historically, such weather patterns have had limited impact on oil palm yields, but very strong events can disrupt flowering and affect yields in the following season.
Past trends show that a very strong El Niño could reduce regional output by 2 to 9 per cent in the next year, which may push CPO prices up by another 5 to 10 per cent.
In the oleochemicals segment, prices have increased by 10 to 15 per cent since January 2026, though higher input costs and a weaker global economic outlook may weigh on demand.
Despite these challenges, analysts expect the sector’s returns to remain strong through 2026 and 2027, supported by improved financial positions of plantation companies and lower debt levels among larger players. Bio energy Times
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Noraini sees opportunities for deeper Malaysia-China palm oil collaboration
KUALA LUMPUR (May 12): Malaysia and China share significant opportunities to deepen collaboration in value-added industries for palm oil, particularly as demand continues to grow for sustainable, performance-driven, and application-specific palm-based products.
In a statement from the Malaysian Palm Oil Council (MPOC), Plantation and Commodities Minister Datuk Seri Dr Noraini Ahmad said palm oil today plays an increasingly important role across multiple high-growth sectors, including food manufacturing, oleochemicals, specialty ingredients, personal care, home care, and emerging industrial applications.
“Palm oil is no longer viewed solely as a commodity export, but increasingly as a strategic industrial enabler that supports innovation, sustainable manufacturing, and high-value economic growth.
“Malaysia sees strong potential to further strengthen collaboration with China through downstream development, technology exchange, and the expansion of value-added palm-based industries,” she added.
Noraini said this in her keynote address at the Malaysian Palm Oil Forum (MPOF) China 2026, hosted by the MPOC in Shanghai recently.
The forum highlighted the expanding role of Malaysian palm oil as a high-value, sustainable industrial input, supporting innovation, downstream development, and long-term economic cooperation between both countries.
She said that stronger Malaysia-China cooperation in the palm oil sector would not only enhance bilateral trade performance but also support industrial innovation, resilient supply chains, and long-term sustainable development between both countries.
Noraini also reaffirmed Malaysia’s commitment towards sustainable production practices through the mandatory Malaysian Sustainable Palm Oil (MSPO) certification scheme, which has been fully implemented across the national palm oil supply chain since 2020.
She noted that sustainability, traceability, and responsible production remain critical pillars in strengthening global confidence towards Malaysian palm oil, particularly within evolving international market expectations.
China remains one of Malaysia’s most important palm oil markets and a key contributor to future industry growth, according to the statement.
“In 2025, Malaysia exported approximately 2.64 million tonnes of palm oil and palm-based products to China, generating export earnings valued at approximately RM10.9 billion,” it said.
It said the MPOF China 2026 builds upon the MPOC’s broader strategic engagement efforts in China.
“In November 2025, the MPOC hosted 37 leading Chinese buyers in Malaysia to strengthen industry confidence through direct exposure to Malaysia’s plantations, refineries, downstream manufacturing facilities, and sustainability ecosystem.
“Through strategic platforms such as the MPOF, Malaysia remains committed to strengthening commercial partnerships, expanding market opportunities, and reinforcing the role of Malaysian palm oil as a sustainable, high-value solution supporting the next phase of Malaysia-China industrial growth and economic cooperation,” it said. The Edge
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US Representative Lloyd Doggett Introduces “Trade Responsibly for Environmental Emissions Act”
Washington, D.C.— Today, Rep. Lloyd Doggett (D-Austin), an active member of the House Ways and Means Trade Subcommittee and of the House Sustainable Energy and Environment Coalition (SEEC), released a video introducing the “Trade Responsibly for Environmental Emissions Act,” or “TREE Act.” By prohibiting the import of commodities and products derived from lands affected by deforestation or forest degradation, this bill is designed to position the United States as a leader together with the European Union in the struggle to protect one of our greatest tools to reduce greenhouse emissions: our forests.
In this new video, Rep. Doggett discusses the importance of the TREE Act with Jennifer Skene, the Global Forest Policy Director at the Natural Resources Defense Council (NRDC).
Each year, over 25 million acres around the world are being deforested, accounting for up to 21% of global greenhouse gas emissions. To incentivize forest protection, a new law, the European Union Deforestation Regulation, requires companies marketing products in the EU to certify that certain commodities—palm oil, rubber, soy, cocoa, cattle, and wood— and products derived from them have not been sourced from areas of deforestation and forest degradation. The TREE Act would establish a similar requirement for U.S. companies importing and selling these commodities and derived products, ensure consistent trade standards and ensure that American companies lead the way in the effort to protect the world’s invaluable forests. Many American companies already responsibly doing just that.
“Our world’s incredible forests, which serve as the lungs of our planet and the habitat for so many diverse plants and animals, are vanishing at an incredible pace,” said Rep. Doggett. “The TREE Act will not only protect our forests from those who seek to profit from their destruction, it will also help American businesses by assuring that they are responsible for compliance with a single, uniform set of sustainability trade rules.”
“Forest loss and degradation do not occur in a vacuum: they are driven by outmoded, irresponsible trade practices. From wood pulp to palm oil, the U.S. marketplace is saturated with products that needlessly come at the expense of forests and the invaluable role they play in sustaining life on earth, “said Jennifer Skene, Global Forest Policy Director at Natural Resources Defense Council. “The TREE Act creates long-overdue guardrails that ensure U.S. purchasers aren’t unwittingly purchasing forest destruction alongside their toilet paper and shampoo. It sets up consistent, common-sense trade standards that make the marketplace—and our future— healthier and more resilient.”
"Addressing deforestation, both global and domestic, is a key solution to the climate crisis,” said Anna Medema, Associate Director of Legislative Affairs for Forests and Public Lands at Sierra Club. “By curbing demand for commodities derived from deforestation and forest degradation, the TREE Act will protect forests for both their carbon sequestration and their biodiversity values, as well as support sustainable sourcing for American businesses. Sierra Club applauds the introduction of this important bill and thanks Rep. Doggett for his leadership in this effort.
“At a time when too many in power are eager to roll back environmental protections in the U.S., we support the lawmakers who are standing up for global forests by introducing the TREE Act,” said Alex Armstrong, Vice President of External Affairs at Mighty Earth. “Products coming into the U.S. like beef, soy, timber, cocoa, rubber, and palm oil are tainted by legal and illegal deforestation that is harming communities and wildlife. People and animals around the world rely on standing forests for their survival, and Americans don’t want to buy goods produced in the ashes of tropical rainforests. This legislation would set a new standard for forest protection in global supply chains. The world lost the equivalent of more than 15 football fields of primary forest every minute last year, so we are encouraged to see an ambitious policy proposal – one that is commensurate with the scale of the challenge of global deforestation.”
This bill is cosponsored by Representatives Yassamin Ansari (AZ-03), Julia Brownley (CA-26), Greg Casar (TX-35), Sean Casten (IL-06), Kathy Castor (FL-14), Emanuel Cleaver (MO-05), Steve Cohen (TN-09), Veronica Escobar (TX-16), Maxwell Frost (FL-10), Adelita Grijalva (AZ-07), Pramila Jayapal (WA-07), Hank Johnson (GA-04), Summer Lee (PA-12), James McGovern (MA-02), Eleanor Holmes Norton (D.C. At-large), Mark Pocan (WI-02), Mike Quigley (IL-05), Jamie Raskin (MA-08), Janice Schakowsky (IL-09), Rashida Tlaib (MI-12), Nikema Williams (GA-05). Doggett
Stronger palm oil demand seen in Malaysia, Indonesia despite export dip; supply concerns persist
April’s better-than-expected plantation output has raised hopes of a strong second quarter, even as a recent decline in exports is seen as temporary.
Analysts said demand for palm oil is likely to improve in the coming months, supported by policy changes in key producing countries. Malaysia is set to increase its biodiesel blend from B10 to B15 from June 1, while Indonesia plans to raise its B40 mandate further towards B50 from July 1. These moves are expected to boost consumption of palm oil.
At the same time, edible oil inventories in India are estimated to be 10 to 20 per cent lower than a year ago, adding to demand pressure, Focus Malaysia reported.
Global supplies of edible oils are expected to remain tight through 2026. There are also concerns that supply conditions could worsen in 2027 if a strong El Niño develops later this year. Supply worries had already emerged before tensions in the Middle East began, and rising energy prices since then have increased interest in biodiesel as an alternative fuel.
Countries such as Indonesia, Malaysia and Thailand are moving ahead with higher biodiesel blending targets. Once fully implemented, these measures could add demand of around three to four million metric tonnes of palm oil annually, roughly 10 per cent higher consumption.
While plantation companies are expected to face rising fertiliser and energy costs from the second half of 2026, the sector is still likely to benefit from higher crude palm oil (CPO) prices. Prices have risen from RM4,019 per metric tonne in January to RM4,568 in April, supported by steady demand growth of 3 to 4 per cent and increasing use in biodiesel.
The possibility of CPO prices remaining firm into 2027 is also rising due to the potential formation of a very strong El Niño. Historically, such weather patterns have had limited impact on oil palm yields, but very strong events can disrupt flowering and affect yields in the following season.
Past trends show that a very strong El Niño could reduce regional output by 2 to 9 per cent in the next year, which may push CPO prices up by another 5 to 10 per cent.
In the oleochemicals segment, prices have increased by 10 to 15 per cent since January 2026, though higher input costs and a weaker global economic outlook may weigh on demand.
Despite these challenges, analysts expect the sector’s returns to remain strong through 2026 and 2027, supported by improved financial positions of plantation companies and lower debt levels among larger players. Bio energy Times
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Noraini sees opportunities for deeper Malaysia-China palm oil collaboration
KUALA LUMPUR (May 12): Malaysia and China share significant opportunities to deepen collaboration in value-added industries for palm oil, particularly as demand continues to grow for sustainable, performance-driven, and application-specific palm-based products.
In a statement from the Malaysian Palm Oil Council (MPOC), Plantation and Commodities Minister Datuk Seri Dr Noraini Ahmad said palm oil today plays an increasingly important role across multiple high-growth sectors, including food manufacturing, oleochemicals, specialty ingredients, personal care, home care, and emerging industrial applications.
“Palm oil is no longer viewed solely as a commodity export, but increasingly as a strategic industrial enabler that supports innovation, sustainable manufacturing, and high-value economic growth.
“Malaysia sees strong potential to further strengthen collaboration with China through downstream development, technology exchange, and the expansion of value-added palm-based industries,” she added.
Noraini said this in her keynote address at the Malaysian Palm Oil Forum (MPOF) China 2026, hosted by the MPOC in Shanghai recently.
The forum highlighted the expanding role of Malaysian palm oil as a high-value, sustainable industrial input, supporting innovation, downstream development, and long-term economic cooperation between both countries.
She said that stronger Malaysia-China cooperation in the palm oil sector would not only enhance bilateral trade performance but also support industrial innovation, resilient supply chains, and long-term sustainable development between both countries.
Noraini also reaffirmed Malaysia’s commitment towards sustainable production practices through the mandatory Malaysian Sustainable Palm Oil (MSPO) certification scheme, which has been fully implemented across the national palm oil supply chain since 2020.
She noted that sustainability, traceability, and responsible production remain critical pillars in strengthening global confidence towards Malaysian palm oil, particularly within evolving international market expectations.
China remains one of Malaysia’s most important palm oil markets and a key contributor to future industry growth, according to the statement.
“In 2025, Malaysia exported approximately 2.64 million tonnes of palm oil and palm-based products to China, generating export earnings valued at approximately RM10.9 billion,” it said.
It said the MPOF China 2026 builds upon the MPOC’s broader strategic engagement efforts in China.
“In November 2025, the MPOC hosted 37 leading Chinese buyers in Malaysia to strengthen industry confidence through direct exposure to Malaysia’s plantations, refineries, downstream manufacturing facilities, and sustainability ecosystem.
“Through strategic platforms such as the MPOF, Malaysia remains committed to strengthening commercial partnerships, expanding market opportunities, and reinforcing the role of Malaysian palm oil as a sustainable, high-value solution supporting the next phase of Malaysia-China industrial growth and economic cooperation,” it said. The Edge
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US Representative Lloyd Doggett Introduces “Trade Responsibly for Environmental Emissions Act”
Washington, D.C.— Today, Rep. Lloyd Doggett (D-Austin), an active member of the House Ways and Means Trade Subcommittee and of the House Sustainable Energy and Environment Coalition (SEEC), released a video introducing the “Trade Responsibly for Environmental Emissions Act,” or “TREE Act.” By prohibiting the import of commodities and products derived from lands affected by deforestation or forest degradation, this bill is designed to position the United States as a leader together with the European Union in the struggle to protect one of our greatest tools to reduce greenhouse emissions: our forests.
In this new video, Rep. Doggett discusses the importance of the TREE Act with Jennifer Skene, the Global Forest Policy Director at the Natural Resources Defense Council (NRDC).
Each year, over 25 million acres around the world are being deforested, accounting for up to 21% of global greenhouse gas emissions. To incentivize forest protection, a new law, the European Union Deforestation Regulation, requires companies marketing products in the EU to certify that certain commodities—palm oil, rubber, soy, cocoa, cattle, and wood— and products derived from them have not been sourced from areas of deforestation and forest degradation. The TREE Act would establish a similar requirement for U.S. companies importing and selling these commodities and derived products, ensure consistent trade standards and ensure that American companies lead the way in the effort to protect the world’s invaluable forests. Many American companies already responsibly doing just that.
“Our world’s incredible forests, which serve as the lungs of our planet and the habitat for so many diverse plants and animals, are vanishing at an incredible pace,” said Rep. Doggett. “The TREE Act will not only protect our forests from those who seek to profit from their destruction, it will also help American businesses by assuring that they are responsible for compliance with a single, uniform set of sustainability trade rules.”
“Forest loss and degradation do not occur in a vacuum: they are driven by outmoded, irresponsible trade practices. From wood pulp to palm oil, the U.S. marketplace is saturated with products that needlessly come at the expense of forests and the invaluable role they play in sustaining life on earth, “said Jennifer Skene, Global Forest Policy Director at Natural Resources Defense Council. “The TREE Act creates long-overdue guardrails that ensure U.S. purchasers aren’t unwittingly purchasing forest destruction alongside their toilet paper and shampoo. It sets up consistent, common-sense trade standards that make the marketplace—and our future— healthier and more resilient.”
"Addressing deforestation, both global and domestic, is a key solution to the climate crisis,” said Anna Medema, Associate Director of Legislative Affairs for Forests and Public Lands at Sierra Club. “By curbing demand for commodities derived from deforestation and forest degradation, the TREE Act will protect forests for both their carbon sequestration and their biodiversity values, as well as support sustainable sourcing for American businesses. Sierra Club applauds the introduction of this important bill and thanks Rep. Doggett for his leadership in this effort.
“At a time when too many in power are eager to roll back environmental protections in the U.S., we support the lawmakers who are standing up for global forests by introducing the TREE Act,” said Alex Armstrong, Vice President of External Affairs at Mighty Earth. “Products coming into the U.S. like beef, soy, timber, cocoa, rubber, and palm oil are tainted by legal and illegal deforestation that is harming communities and wildlife. People and animals around the world rely on standing forests for their survival, and Americans don’t want to buy goods produced in the ashes of tropical rainforests. This legislation would set a new standard for forest protection in global supply chains. The world lost the equivalent of more than 15 football fields of primary forest every minute last year, so we are encouraged to see an ambitious policy proposal – one that is commensurate with the scale of the challenge of global deforestation.”
This bill is cosponsored by Representatives Yassamin Ansari (AZ-03), Julia Brownley (CA-26), Greg Casar (TX-35), Sean Casten (IL-06), Kathy Castor (FL-14), Emanuel Cleaver (MO-05), Steve Cohen (TN-09), Veronica Escobar (TX-16), Maxwell Frost (FL-10), Adelita Grijalva (AZ-07), Pramila Jayapal (WA-07), Hank Johnson (GA-04), Summer Lee (PA-12), James McGovern (MA-02), Eleanor Holmes Norton (D.C. At-large), Mark Pocan (WI-02), Mike Quigley (IL-05), Jamie Raskin (MA-08), Janice Schakowsky (IL-09), Rashida Tlaib (MI-12), Nikema Williams (GA-05). Doggett
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May 12, 2026
IISD partners with MSPO to strengthen the reliability of palm oil sustainability claims
The International Institute for Sustainable Development (IISD) and Malaysian Sustainable Palm Oil (MSPO) are partnering to strengthen the reliability, effectiveness, and visibility of sustainability claims associated with the MSPO Certification Scheme.
This collaboration comes at a critical time, when such claims are increasingly subject to regulatory scrutiny, due diligence requirements, and heightened expectations for verifiable and transparent information across global supply chains.
IISD and MSPO recognize that the future of sustainable consumption and trade will depend not only on certification coverage, but on the quality, clarity, and reliability of claims made to markets, regulators, and consumers.
IISD, an independent think tank headquartered in Canada, brings more than 30 years of expertise in policy and standards research, benchmarking, and evidence-based analysis. MSPO, Malaysia’s national certification scheme, plays a central role in advancing sustainable palm oil production in Malaysia and ensuring responsible supply chains.
Through this technical collaboration, IISD and MSPO will work together to
“Trust is a crucial component of any market-based sustainability initiative. Without clear evidence to substantiate their claims, there is no way for consumers and value chain actors to distinguish real impact from greenwashing,” said Cristina Larrea, director of agriculture, food, and sustainability initiatives at IISD. “We are delighted to be working with MSPO to help them deliver and disclose progress in making palm oil production in Malaysia more sustainable.”
About IISD
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Singapore-listed palm oil stocks catch biodiesel spark
A fortuitous mix of supportive fundamentals could enable them to burnish their sustainability credentials
SHARES of Singapore-listed palm oil companies have climbed steadily so far this year as the war in Iran further elevates the price of the commodity.
The fortuitous mix of supportive fundamentals could provide the palm oil companies with a precious opportunity to burnish their sustainability credentials ahead of a future where deforestation policies and nature reporting gain prominence.
One of the beneficiaries of the fossil fuel supply disruptions that have arisen from the Middle East conflict has been the uber useful palm oil.
Shares of Indonesian plantation group Kencana Agri : BNE 0% have shot up the most among Singapore-listed palm oil counters, doubling so far this year to S$0.53 on May 6 from S$0.26 at the end of 2025. The stock has been on a tear since the company announced in February that net profit for 2025 rose 54 per cent to US$18.4 million and declared a S$0.015 per share final dividend.
Shares of Wilmar International : F34 +0.27%, the largest Singapore-listed palm oil play by market capitalisation, last traded at S$3.75 on May 6, up 21.8 per cent so far this year. The stock reached a S$3.99 close in April, the highest in almost three years.
As reference, the broader market as measured by the Straits Times Index is up just 6.1 per cent on the year.
Price of palm oil
One of the key drivers behind the stock rallies has been the price of palm oil itself. The average spot month settlement price of crude palm oil (CPO) futures on Bursa Malaysia increased from RM4,043.82 per tonne in December 2025 to RM4,570.36 per tonne in April 2026, a 13 per cent hike.
That pricing strength rests on three factors, two of which are related to the Iran war. The first is that the closure of the Strait of Hormuz has driven up energy prices; since palm oil can be substituted for mineral oils in some fuels and consumer products, higher oil and gas prices also tend to raise prices for palm oil.
The second factor is that the ongoing supply disruption has strengthened South-east Asian governments’ resolve on biodiesel adoption.
Most notably, Indonesian Agriculture Minister Andi Amran Sulaiman said on Apr 19 that Indonesia will stop importing subsidised low-grade diesel from Jul 1 as the country imposes a mandate for B50 biodiesel. The number in B50 is the percentage of biofuel blended with mineral diesel, and B40 is the current mandate in Indonesia.
Malaysia also said in April that it will gradually raise its biodiesel mandate to B15 from the current B10 policy. Thailand currently subsidises B20 fuel.
The third factor is weather related. The general expectation is that higher surface temperatures due to the El Nino effect this year could hurt palm oil production, which would raise prices.
In March, OCBC analysts Chu Peng, Ada Lim and Ahmad A Enver raised their CPO target to RM4,300 per tonne from RM4,200 per tonne. OCBC has “buy” ratings on Wilmar and Bumitama Agri : P8Z -1.09%, and a “hold” call on Golden Agri-Resources : E5H 0%.
Fitch Solutions’ BMI is also forecasting RM4,300 per tonne for CPO in 2026, and expects RM4,460 per tonne by 2030. Well-followed edible oils analyst Dorab Mistry is going even further, calling for palm oil futures to hit around RM5,000 per tonne by June and possibly RM5,200 per tonne by mid-July.
Moving alongside those supportive factors are sustainability-related issues where the impact on the business hinges on how well the company meets market and regulatory expectations.
One of the more imminent ones is the European Union Deforestation Regulation, which aims to ban imports that originate from recently deforested land or have contributed to forest degradation. Products that use palm oil are among those covered by the rule.
This week, the EU completed a simplification review of the long-delayed rule and issued a draft for public comment. Among the proposed changes is an expansion of the scope to include more palm oil derivatives, including soap.
Perhaps more important is that the December 2026 implementation timeline is still intact. The good news is that the palm oil companies will now have greater visibility about the timing and the requirements of the new law. But the work to achieve compliance – and to protect revenue – lies ahead.
Another major transition event worthy of attention is ongoing progress towards standards for nature reporting.
In April, the International Sustainability Standards Board, which drafts global accounting rules on sustainability disclosures, agreed to propose a practice statement on nature-related disclosures. An exposure draft is expected to be put up for public comment in October.
The practice statement will not change requirements of the existing sustainability reporting standards, and instead provide guidance on how to disclose nature-related risks and opportunities within the current rules. But it is one step in a committed journey by the accounting body to address nature reporting.
The policy trajectory suggests that the palm oil companies will have to be more conscientious about their nature-related disclosures. This will take more resources, but if done well it could also raise a company’s profile with investors that incorporate nature factors into their deployment decisions.
The number and sophistication of those investors is likely to grow, in the same way that sustainability and climate factors are now integrated into the assessments by most major fund managers.
The supportive fundamental conditions – an energy crisis, a structural fuel transition and weather – don’t always fall in place at the same time, and the stock prices suggest that the market has big expectations for the year ahead.
Shareholders will no doubt be looking for dividends or some form of reward, but the companies might also want to consider diverting some of the profits towards future-proofing the company against the climate and sustainability transition risks that lay ahead. Business Times
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APOA welcomes Sri Lanka's rethink on palm oil ban with sustainability caveat
NEW DELHI: (May 11) The Asian Palm Oil Alliance (APOA) on Monday welcomed Sri Lanka's move to reconsider a ban on oil palm cultivation, saying responsible farming practices could help the country meet both food security and environmental goals.
Sri Lanka is weighing lifting the prohibition subject to final approvals and sustainability safeguards.
APOA Chairman Atul Chaturvedi said oil palm ranks among the most efficient vegetable oil crops globally in terms of yield per hectare and that economic and environmental objectives need not conflict. PTI News
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P100 – a constant for 25 years
At Case & Brewer, more than 25 years of using P100 palm oil has delivered the consistency and reliability the business depends on
Oly Smyth, owner of Case & Brewer in Dorchester, Dorset, aims for consistency every day. First stepping into the shop aged 15 in 1985, he took ownership in 2022 after seeing the business through Covid. Today, the shop remains firmly rooted in tradition, offering walk-ins only – no delivery or click-and-collect – and a clear focus on fish.
n example of that consistency is the continued use of P100 palm oil. “I’ve used it for as long as I can remember, since 2000 at least,” says Oly. The decision predates his ownership, but it is one he has continued to uphold. “Customers like it and we’ve always found it a better value oil than other ones,” he explains. “We have tried other brands of palm oil and other types of oil, like rapeseed, which just held in the food and it wasn’t nice at all. None of them worked for a busy takeaway like ours.”
Case & Brewer is a high volume shop with fish its biggest seller. As well as serving cod and haddock, Oly has successfully added hoki to the menu in a bid to tackle rising fish prices and offer customers a more cost-effective alternative. “It’s selling really well,” he says. “I don’t think hoki ever will catch up with cod, but we’re getting returning customers.”
With the frying range in constant use, Oly needs an oil that can perform under pressure and that is reliable. “P100 is very consistent, I’ve never had any troubles with it, and it lasts really well,” he says. “In fact, we don’t throw any away, we’re so busy, it goes out through the food, and we just keep topping it up.”
Longevity and consistency go hand in hand, giving Oly no reason to change brand over the last two decades. He adds: “A good cooking oil is paramount, it’s what you cook your food in, it has to be good. If you change something like your frying medium and it’s not good enough, customers will notice and that’s the last thing I want. I don’t want to scare off customers, I want to keep the ones I’ve got.”
With Case & Brewer a member of the Sustainable Palm Oil Community, sustainability has also become part of the reason why Oly won’t switch. He explains: “The fact that P100 is sustainable means we are doing the right thing. I like to use good quality products, but knowing our oil is better for the environment is a win-win.” Fry Magazine
IISD partners with MSPO to strengthen the reliability of palm oil sustainability claims
The International Institute for Sustainable Development (IISD) and Malaysian Sustainable Palm Oil (MSPO) are partnering to strengthen the reliability, effectiveness, and visibility of sustainability claims associated with the MSPO Certification Scheme.
This collaboration comes at a critical time, when such claims are increasingly subject to regulatory scrutiny, due diligence requirements, and heightened expectations for verifiable and transparent information across global supply chains.
IISD and MSPO recognize that the future of sustainable consumption and trade will depend not only on certification coverage, but on the quality, clarity, and reliability of claims made to markets, regulators, and consumers.
IISD, an independent think tank headquartered in Canada, brings more than 30 years of expertise in policy and standards research, benchmarking, and evidence-based analysis. MSPO, Malaysia’s national certification scheme, plays a central role in advancing sustainable palm oil production in Malaysia and ensuring responsible supply chains.
Through this technical collaboration, IISD and MSPO will work together to
- benchmark MSPO against international best practices and conduct a pilot to test selected recommendations to strengthen the reliability of MSPO’s claims,
- develop clear and effective ways for MSPO to communicate its sustainability claims to support informed decision making among consumers and build trust
- among market actors, and
- contribute to global efforts to advance reliable, evidence-based sustainability frameworks.
“Trust is a crucial component of any market-based sustainability initiative. Without clear evidence to substantiate their claims, there is no way for consumers and value chain actors to distinguish real impact from greenwashing,” said Cristina Larrea, director of agriculture, food, and sustainability initiatives at IISD. “We are delighted to be working with MSPO to help them deliver and disclose progress in making palm oil production in Malaysia more sustainable.”
About IISD
---------
Singapore-listed palm oil stocks catch biodiesel spark
A fortuitous mix of supportive fundamentals could enable them to burnish their sustainability credentials
SHARES of Singapore-listed palm oil companies have climbed steadily so far this year as the war in Iran further elevates the price of the commodity.
The fortuitous mix of supportive fundamentals could provide the palm oil companies with a precious opportunity to burnish their sustainability credentials ahead of a future where deforestation policies and nature reporting gain prominence.
One of the beneficiaries of the fossil fuel supply disruptions that have arisen from the Middle East conflict has been the uber useful palm oil.
Shares of Indonesian plantation group Kencana Agri : BNE 0% have shot up the most among Singapore-listed palm oil counters, doubling so far this year to S$0.53 on May 6 from S$0.26 at the end of 2025. The stock has been on a tear since the company announced in February that net profit for 2025 rose 54 per cent to US$18.4 million and declared a S$0.015 per share final dividend.
Shares of Wilmar International : F34 +0.27%, the largest Singapore-listed palm oil play by market capitalisation, last traded at S$3.75 on May 6, up 21.8 per cent so far this year. The stock reached a S$3.99 close in April, the highest in almost three years.
As reference, the broader market as measured by the Straits Times Index is up just 6.1 per cent on the year.
Price of palm oil
One of the key drivers behind the stock rallies has been the price of palm oil itself. The average spot month settlement price of crude palm oil (CPO) futures on Bursa Malaysia increased from RM4,043.82 per tonne in December 2025 to RM4,570.36 per tonne in April 2026, a 13 per cent hike.
That pricing strength rests on three factors, two of which are related to the Iran war. The first is that the closure of the Strait of Hormuz has driven up energy prices; since palm oil can be substituted for mineral oils in some fuels and consumer products, higher oil and gas prices also tend to raise prices for palm oil.
The second factor is that the ongoing supply disruption has strengthened South-east Asian governments’ resolve on biodiesel adoption.
Most notably, Indonesian Agriculture Minister Andi Amran Sulaiman said on Apr 19 that Indonesia will stop importing subsidised low-grade diesel from Jul 1 as the country imposes a mandate for B50 biodiesel. The number in B50 is the percentage of biofuel blended with mineral diesel, and B40 is the current mandate in Indonesia.
Malaysia also said in April that it will gradually raise its biodiesel mandate to B15 from the current B10 policy. Thailand currently subsidises B20 fuel.
The third factor is weather related. The general expectation is that higher surface temperatures due to the El Nino effect this year could hurt palm oil production, which would raise prices.
In March, OCBC analysts Chu Peng, Ada Lim and Ahmad A Enver raised their CPO target to RM4,300 per tonne from RM4,200 per tonne. OCBC has “buy” ratings on Wilmar and Bumitama Agri : P8Z -1.09%, and a “hold” call on Golden Agri-Resources : E5H 0%.
Fitch Solutions’ BMI is also forecasting RM4,300 per tonne for CPO in 2026, and expects RM4,460 per tonne by 2030. Well-followed edible oils analyst Dorab Mistry is going even further, calling for palm oil futures to hit around RM5,000 per tonne by June and possibly RM5,200 per tonne by mid-July.
Moving alongside those supportive factors are sustainability-related issues where the impact on the business hinges on how well the company meets market and regulatory expectations.
One of the more imminent ones is the European Union Deforestation Regulation, which aims to ban imports that originate from recently deforested land or have contributed to forest degradation. Products that use palm oil are among those covered by the rule.
This week, the EU completed a simplification review of the long-delayed rule and issued a draft for public comment. Among the proposed changes is an expansion of the scope to include more palm oil derivatives, including soap.
Perhaps more important is that the December 2026 implementation timeline is still intact. The good news is that the palm oil companies will now have greater visibility about the timing and the requirements of the new law. But the work to achieve compliance – and to protect revenue – lies ahead.
Another major transition event worthy of attention is ongoing progress towards standards for nature reporting.
In April, the International Sustainability Standards Board, which drafts global accounting rules on sustainability disclosures, agreed to propose a practice statement on nature-related disclosures. An exposure draft is expected to be put up for public comment in October.
The practice statement will not change requirements of the existing sustainability reporting standards, and instead provide guidance on how to disclose nature-related risks and opportunities within the current rules. But it is one step in a committed journey by the accounting body to address nature reporting.
The policy trajectory suggests that the palm oil companies will have to be more conscientious about their nature-related disclosures. This will take more resources, but if done well it could also raise a company’s profile with investors that incorporate nature factors into their deployment decisions.
The number and sophistication of those investors is likely to grow, in the same way that sustainability and climate factors are now integrated into the assessments by most major fund managers.
The supportive fundamental conditions – an energy crisis, a structural fuel transition and weather – don’t always fall in place at the same time, and the stock prices suggest that the market has big expectations for the year ahead.
Shareholders will no doubt be looking for dividends or some form of reward, but the companies might also want to consider diverting some of the profits towards future-proofing the company against the climate and sustainability transition risks that lay ahead. Business Times
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APOA welcomes Sri Lanka's rethink on palm oil ban with sustainability caveat
NEW DELHI: (May 11) The Asian Palm Oil Alliance (APOA) on Monday welcomed Sri Lanka's move to reconsider a ban on oil palm cultivation, saying responsible farming practices could help the country meet both food security and environmental goals.
Sri Lanka is weighing lifting the prohibition subject to final approvals and sustainability safeguards.
APOA Chairman Atul Chaturvedi said oil palm ranks among the most efficient vegetable oil crops globally in terms of yield per hectare and that economic and environmental objectives need not conflict. PTI News
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P100 – a constant for 25 years
At Case & Brewer, more than 25 years of using P100 palm oil has delivered the consistency and reliability the business depends on
Oly Smyth, owner of Case & Brewer in Dorchester, Dorset, aims for consistency every day. First stepping into the shop aged 15 in 1985, he took ownership in 2022 after seeing the business through Covid. Today, the shop remains firmly rooted in tradition, offering walk-ins only – no delivery or click-and-collect – and a clear focus on fish.
n example of that consistency is the continued use of P100 palm oil. “I’ve used it for as long as I can remember, since 2000 at least,” says Oly. The decision predates his ownership, but it is one he has continued to uphold. “Customers like it and we’ve always found it a better value oil than other ones,” he explains. “We have tried other brands of palm oil and other types of oil, like rapeseed, which just held in the food and it wasn’t nice at all. None of them worked for a busy takeaway like ours.”
Case & Brewer is a high volume shop with fish its biggest seller. As well as serving cod and haddock, Oly has successfully added hoki to the menu in a bid to tackle rising fish prices and offer customers a more cost-effective alternative. “It’s selling really well,” he says. “I don’t think hoki ever will catch up with cod, but we’re getting returning customers.”
With the frying range in constant use, Oly needs an oil that can perform under pressure and that is reliable. “P100 is very consistent, I’ve never had any troubles with it, and it lasts really well,” he says. “In fact, we don’t throw any away, we’re so busy, it goes out through the food, and we just keep topping it up.”
Longevity and consistency go hand in hand, giving Oly no reason to change brand over the last two decades. He adds: “A good cooking oil is paramount, it’s what you cook your food in, it has to be good. If you change something like your frying medium and it’s not good enough, customers will notice and that’s the last thing I want. I don’t want to scare off customers, I want to keep the ones I’ve got.”
With Case & Brewer a member of the Sustainable Palm Oil Community, sustainability has also become part of the reason why Oly won’t switch. He explains: “The fact that P100 is sustainable means we are doing the right thing. I like to use good quality products, but knowing our oil is better for the environment is a win-win.” Fry Magazine
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May 10, 2026
A new B50 diesel plan could save $9.18 billion, but the 50% palm blend may redraw the fuel market overnight
Indonesia says it wants to flip a big switch on July 1, 2026. The plan is to move the country’s diesel pool to B50, a blend that doubles down on palm-based biodiesel, while the government publishes a fresh reference price every month.
For anyone who runs a delivery fleet or pays for generator fuel, the details are where the stress lives. If pricing, supply, and engine reliability line up, B50 could cut imports and emissions together. If they do not, the country risks turning energy security into a new kind of volatility.
B50 in plain English
B50 means a diesel fuel that is 50% conventional petroleum diesel and 50% biodiesel, typically a palm-derived FAME component (fatty acid methyl ester). Indonesia already mandates B40, so this is an escalation of an existing system, not a brand new experiment.
Officials have tied the move to security as much as climate. The Energy and Mineral Resources Ministry says the B50 shift is meant to strengthen resilience against global supply disruptions.
The monthly reference price is the real pressure point
Energy officials say they are finalizing the B50 pricing formula and will keep using the established approach, then publish the reference price each month. Eniya Listiani Dewi has described it plainly, saying the government will follow the formula and issue the price monthly.
That is good for transparency, but it can also move market swings into everyday costs faster. In the United States, fuel regulators note that storing and dispensing blends above B20 often triggers additional compatibility requirements, which is one reason higher blends tend to come with extra testing and documentation.
So the question is simple. Will the policy smooth bills, or just make the fluctuations easier to track?
Emissions targets look big because the blend is big
Indonesia’s energy ministry has said B50 is expected to reduce greenhouse gas emissions by up to 46.72 million metric tons of CO2 in 2026, which is roughly 51.5 million U.S. tons. Treat it as a target, not a guarantee, because outcomes depend on how much B50 is used and how consistently it meets quality standards.
There is a clear baseline in today’s program. Officials say B40 has reduced diesel imports by 3.3 million kiloliters, about 872 million gallons, and cut emissions by 38.88 million metric tons of CO2 equivalent, about 42.9 million U.S. tons.
The foreign exchange math is why the government is moving fast
Antara reported that officials project B50 could save up to 157.28 trillion rupiah, about $9.18 billion, in foreign exchange in 2026. In that same report, Eniya Listiani Dewi said “God willing, it can take effect on July 1.”
Officials also say the B50 estimate is higher than the earlier B40 savings target of 140 trillion rupiah, which is about $8.2 billion using the same conversion in the government estimate.
Separately, Indonesia’s Cabinet Secretariat quoted Coordinating Minister Airlangga Hartarto saying B50 could reduce fossil-based fuel use by 4 million kiloliters, about 1.06 billion gallons, and deliver savings including lower biodiesel subsidies.
Palm oil supply and subsidy funding are the hard constraints
Energy officials have said they expect FAME supply to be sufficient for a July rollout, but they also acknowledge they are still working through consumption projections with the oil and gas directorate.
Kumparan reported that biodiesel distribution by mid-April reached 3.90 million kiloliters, about 1.03 billion gallons, which officials described as roughly a quarter of the year’s initial allocation of 15.65 million kiloliters, about 4.13 billion gallons.
On the industry side, Reuters has cited estimates that a full move to B50 would push biodiesel demand toward about 19 million kiloliters a year, roughly 5.0 billion gallons, and could require additional production capacity. Reuters has also reported that Indonesia has considered raising palm oil export levies to keep the biodiesel funding pool healthy as blend levels climb.
Road tests are about more than mileage
Indonesia’s Energy and Mineral Resources Ministry says its B50 testing started with lab work in early 2025 and expanded into road and field trials across six sectors on December 9, 2025. The list includes automotive, mining, maritime transport, rail, agriculture machinery, and power generation, which is exactly where diesel demand is hardest to replace.
The early readout has been cautiously positive. The ministry says heavier diesel vehicles over 3.5 metric tons, about 7,700 pounds, completed a 40,000 kilometer run, about 24,855 miles, and lighter vehicles were at 40,000 kilometers on a 50,000 kilometer target, about 31,069 miles, with engine and fuel filter conditions still within manufacturer recommendations.
Officials are also tightening the fuel specs behind the scenes. The ministry has highlighted stricter limits on water content and monoglycerides, alongside higher oxidation stability targets (including a 300 ppm water limit, a 0.47% mass cap on monoglycerides, and a 900 minute minimum for oxidation stability) to keep the fuel stable in storage and distribution.
A defense use case is already emerging
This is not only a civilian story. Antara reported that Indonesia’s Navy plans to use B50 for patrol vessels, and the Navy chief said “Going forward, we will use B50 fuel,” while noting it will require engine adjustments. Voz Populi
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Biofuels, potential to double capacity in Italia
Today plants for three million tonnes will increase with the new conversion of Eni's Livorno hub
Significant industrial potential, the sword of Damocles of European legislation to 2035 and the need for greater recognition. The biofuel industry in Italia has significant operators and conversion projects, but in some ways risks remaining in the lurch. Although the current Gulf crisis continues to show the limits of Italy's energy dependency.
"In the current context, all fuels are critical, but biofuels have the undoubted advantage of being decarbonised and reducing dependence on imports of finished products or oil," summarises Unem President Gianni Murano. "Moreover, they open up ample possibilities for the creation of European and national supply chains for their production," he continues, "as highlighted by a very recent study by the European Commission Mobilization of Industrial Capacity Building for Advanced Biofuels. The obstacles lie in European legislation that on the one hand indicates the need for them, and on the other hand still does not recognise them as energy carriers to power zero-emission vehicles post 2035. On top of that, there is excessive regulation that tends to complicate the agricultural potential of biofuels.
Domestic Production
Domestic production is around 1.5 million tonnes against a demand of around 2 million. 'We have an already installed production capacity of more than 3 million tonnes that is destined to grow thanks to a third biorefinery under construction in Livorno and other projects,' Murano clarifies.
The reference is to the conversion of Eni's 500 thousand tonne/year plant in Tuscany, which will be ready by 2026. The group's total biorefining capacity currently stands at 1.65 million tonnes per year, with production of Hvo (hydrotreated vegetable oil, usable as diesel) in Venice (400 thousand tonnes, which will become 600 thousand by 2027), in Gela and the USA, and Saf (sustainable aviation fuel), also in Gela from 2025. Products sold in Italia and Europe. By 2030 Eni aims to reach over 5 million tonnes of biofuel production capacity and over 2 million tonnes of Saf; it has several projects under development including in Sannazzaro de' Burgondi and Priolo in Italia, as well as in Malaysia and South Korea.
"With an enabling regulatory framework," Murano further emphasises, "it would be possible to double production capacity and launch specific investments for the partial or total reconversion of refineries and the construction of dedicated plants. According to estimates by Unem's Research Centre, the consumption of petroleum products by 2030 will be reduced by almost 10 million tonnes compared to today, while biofuels and other low-carbon fuels will grow to 6 million tonnes, touching 10 million by 2040.
The potential of biodiesel
Alongside Hvo, biodiesel is also making a comeback (both in fact have the same production base, vegetable oil residues), with producers gathered in Assitol's Biodiesel Group claiming 'industrial and technological maturity' (in Italia we also have the big player Masol Continentale) and calling for a tax adjustment 'that would put biodiesel in a position to compete on equal terms with Hvo and diesel'.
The European Red III regulation envisages that advanced biofuels will cover more than one third of all renewable energy consumed in the transport sector by 2030. In 2023, Italia, first in Europe, legislated on the matter and recognised the possibility of using liquid biofuels not only mixed with diesel, but in purity. 'There are technologies on the market,' says Carlotta Trucillo, deputy director of Assitol's Biodiesel Group, 'that can ensure that biofuels can be optimally adapted to traditional engines, even when used 100% pure. One of these technologies was developed in Italia and we presented it in April'.
The Ministry of Transport, in November, approved vehicles that adopt systems to use biodiesel safely, but there is a lack of fiscal equalisation of the biofuel used mainly in heavy transport compared to diesel and commercial Hvo, particularly for engines above Euro5. 'Generally speaking,' adds Trucillo, 'we need more regulatory confidence in biodiesel, looking for example at vehicles used by public administration and construction sites in cities, to encourage the use of this type of fuel in purity'.
Benefits and Challenges
The environmental impact of biofuels is estimated to be up to 95 per cent less than that of diesel (considering the entire life cycle), as well as less particulate matter, estimated at around 60 per cent less. However, an essential issue remains in the background, that of the certification of supply chains, to reduce the risks linked to fraudulent imports of uncontrolled feedstocks, to avoid conflicts with agriculture connected, for example, with the intensive cultivation of palm oil and rapeseed. And to ensure a real environmental benefit. Ilsole24ore
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A new B50 diesel plan could save $9.18 billion, but the 50% palm blend may redraw the fuel market overnight
Indonesia says it wants to flip a big switch on July 1, 2026. The plan is to move the country’s diesel pool to B50, a blend that doubles down on palm-based biodiesel, while the government publishes a fresh reference price every month.
For anyone who runs a delivery fleet or pays for generator fuel, the details are where the stress lives. If pricing, supply, and engine reliability line up, B50 could cut imports and emissions together. If they do not, the country risks turning energy security into a new kind of volatility.
B50 in plain English
B50 means a diesel fuel that is 50% conventional petroleum diesel and 50% biodiesel, typically a palm-derived FAME component (fatty acid methyl ester). Indonesia already mandates B40, so this is an escalation of an existing system, not a brand new experiment.
Officials have tied the move to security as much as climate. The Energy and Mineral Resources Ministry says the B50 shift is meant to strengthen resilience against global supply disruptions.
The monthly reference price is the real pressure point
Energy officials say they are finalizing the B50 pricing formula and will keep using the established approach, then publish the reference price each month. Eniya Listiani Dewi has described it plainly, saying the government will follow the formula and issue the price monthly.
That is good for transparency, but it can also move market swings into everyday costs faster. In the United States, fuel regulators note that storing and dispensing blends above B20 often triggers additional compatibility requirements, which is one reason higher blends tend to come with extra testing and documentation.
So the question is simple. Will the policy smooth bills, or just make the fluctuations easier to track?
Emissions targets look big because the blend is big
Indonesia’s energy ministry has said B50 is expected to reduce greenhouse gas emissions by up to 46.72 million metric tons of CO2 in 2026, which is roughly 51.5 million U.S. tons. Treat it as a target, not a guarantee, because outcomes depend on how much B50 is used and how consistently it meets quality standards.
There is a clear baseline in today’s program. Officials say B40 has reduced diesel imports by 3.3 million kiloliters, about 872 million gallons, and cut emissions by 38.88 million metric tons of CO2 equivalent, about 42.9 million U.S. tons.
The foreign exchange math is why the government is moving fast
Antara reported that officials project B50 could save up to 157.28 trillion rupiah, about $9.18 billion, in foreign exchange in 2026. In that same report, Eniya Listiani Dewi said “God willing, it can take effect on July 1.”
Officials also say the B50 estimate is higher than the earlier B40 savings target of 140 trillion rupiah, which is about $8.2 billion using the same conversion in the government estimate.
Separately, Indonesia’s Cabinet Secretariat quoted Coordinating Minister Airlangga Hartarto saying B50 could reduce fossil-based fuel use by 4 million kiloliters, about 1.06 billion gallons, and deliver savings including lower biodiesel subsidies.
Palm oil supply and subsidy funding are the hard constraints
Energy officials have said they expect FAME supply to be sufficient for a July rollout, but they also acknowledge they are still working through consumption projections with the oil and gas directorate.
Kumparan reported that biodiesel distribution by mid-April reached 3.90 million kiloliters, about 1.03 billion gallons, which officials described as roughly a quarter of the year’s initial allocation of 15.65 million kiloliters, about 4.13 billion gallons.
On the industry side, Reuters has cited estimates that a full move to B50 would push biodiesel demand toward about 19 million kiloliters a year, roughly 5.0 billion gallons, and could require additional production capacity. Reuters has also reported that Indonesia has considered raising palm oil export levies to keep the biodiesel funding pool healthy as blend levels climb.
Road tests are about more than mileage
Indonesia’s Energy and Mineral Resources Ministry says its B50 testing started with lab work in early 2025 and expanded into road and field trials across six sectors on December 9, 2025. The list includes automotive, mining, maritime transport, rail, agriculture machinery, and power generation, which is exactly where diesel demand is hardest to replace.
The early readout has been cautiously positive. The ministry says heavier diesel vehicles over 3.5 metric tons, about 7,700 pounds, completed a 40,000 kilometer run, about 24,855 miles, and lighter vehicles were at 40,000 kilometers on a 50,000 kilometer target, about 31,069 miles, with engine and fuel filter conditions still within manufacturer recommendations.
Officials are also tightening the fuel specs behind the scenes. The ministry has highlighted stricter limits on water content and monoglycerides, alongside higher oxidation stability targets (including a 300 ppm water limit, a 0.47% mass cap on monoglycerides, and a 900 minute minimum for oxidation stability) to keep the fuel stable in storage and distribution.
A defense use case is already emerging
This is not only a civilian story. Antara reported that Indonesia’s Navy plans to use B50 for patrol vessels, and the Navy chief said “Going forward, we will use B50 fuel,” while noting it will require engine adjustments. Voz Populi
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Biofuels, potential to double capacity in Italia
Today plants for three million tonnes will increase with the new conversion of Eni's Livorno hub
Significant industrial potential, the sword of Damocles of European legislation to 2035 and the need for greater recognition. The biofuel industry in Italia has significant operators and conversion projects, but in some ways risks remaining in the lurch. Although the current Gulf crisis continues to show the limits of Italy's energy dependency.
"In the current context, all fuels are critical, but biofuels have the undoubted advantage of being decarbonised and reducing dependence on imports of finished products or oil," summarises Unem President Gianni Murano. "Moreover, they open up ample possibilities for the creation of European and national supply chains for their production," he continues, "as highlighted by a very recent study by the European Commission Mobilization of Industrial Capacity Building for Advanced Biofuels. The obstacles lie in European legislation that on the one hand indicates the need for them, and on the other hand still does not recognise them as energy carriers to power zero-emission vehicles post 2035. On top of that, there is excessive regulation that tends to complicate the agricultural potential of biofuels.
Domestic Production
Domestic production is around 1.5 million tonnes against a demand of around 2 million. 'We have an already installed production capacity of more than 3 million tonnes that is destined to grow thanks to a third biorefinery under construction in Livorno and other projects,' Murano clarifies.
The reference is to the conversion of Eni's 500 thousand tonne/year plant in Tuscany, which will be ready by 2026. The group's total biorefining capacity currently stands at 1.65 million tonnes per year, with production of Hvo (hydrotreated vegetable oil, usable as diesel) in Venice (400 thousand tonnes, which will become 600 thousand by 2027), in Gela and the USA, and Saf (sustainable aviation fuel), also in Gela from 2025. Products sold in Italia and Europe. By 2030 Eni aims to reach over 5 million tonnes of biofuel production capacity and over 2 million tonnes of Saf; it has several projects under development including in Sannazzaro de' Burgondi and Priolo in Italia, as well as in Malaysia and South Korea.
"With an enabling regulatory framework," Murano further emphasises, "it would be possible to double production capacity and launch specific investments for the partial or total reconversion of refineries and the construction of dedicated plants. According to estimates by Unem's Research Centre, the consumption of petroleum products by 2030 will be reduced by almost 10 million tonnes compared to today, while biofuels and other low-carbon fuels will grow to 6 million tonnes, touching 10 million by 2040.
The potential of biodiesel
Alongside Hvo, biodiesel is also making a comeback (both in fact have the same production base, vegetable oil residues), with producers gathered in Assitol's Biodiesel Group claiming 'industrial and technological maturity' (in Italia we also have the big player Masol Continentale) and calling for a tax adjustment 'that would put biodiesel in a position to compete on equal terms with Hvo and diesel'.
The European Red III regulation envisages that advanced biofuels will cover more than one third of all renewable energy consumed in the transport sector by 2030. In 2023, Italia, first in Europe, legislated on the matter and recognised the possibility of using liquid biofuels not only mixed with diesel, but in purity. 'There are technologies on the market,' says Carlotta Trucillo, deputy director of Assitol's Biodiesel Group, 'that can ensure that biofuels can be optimally adapted to traditional engines, even when used 100% pure. One of these technologies was developed in Italia and we presented it in April'.
The Ministry of Transport, in November, approved vehicles that adopt systems to use biodiesel safely, but there is a lack of fiscal equalisation of the biofuel used mainly in heavy transport compared to diesel and commercial Hvo, particularly for engines above Euro5. 'Generally speaking,' adds Trucillo, 'we need more regulatory confidence in biodiesel, looking for example at vehicles used by public administration and construction sites in cities, to encourage the use of this type of fuel in purity'.
Benefits and Challenges
The environmental impact of biofuels is estimated to be up to 95 per cent less than that of diesel (considering the entire life cycle), as well as less particulate matter, estimated at around 60 per cent less. However, an essential issue remains in the background, that of the certification of supply chains, to reduce the risks linked to fraudulent imports of uncontrolled feedstocks, to avoid conflicts with agriculture connected, for example, with the intensive cultivation of palm oil and rapeseed. And to ensure a real environmental benefit. Ilsole24ore
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May 09, 2026
Biodiesel demand booms amidst Middle East conflict
The closure of the Strait of Hormuz has cut off more than 14 million barrels of crude oil per day from the global supply
ASKATOON — Global demand for bio-based diesel is soaring, which is spurring consumption of vegetable oil feedstocks.
“This is massive,” said Fred Ghatala, president of Advanced Biofuels Canada.
“It is very apparent that the energy security benefits of biofuels are being leaned on around the globe, especially in countries with the fastest growth in fuel demand.”
The closure of the Strait of Hormuz has cut off more than 14 million barrels of crude oil per day from the global supply, and that is reinforcing plans that were already in the works to diversify fuel supplies in many countries.
The U.S. Environmental Protection Agency recently announced its final Renewable Volume Obligation (RVO) blending rule for biomass-based diesel.
The EPA set the blending mandate for biodiesel and renewable diesel to 5.4 billion gallons in 2026 and 5.5 billion gallons in 2027.
That is a 61 to 64 per cent increase over the 2025 level of 3.35 billion gallons. Producer
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European Union: EU Commission Publishes Simplification Review of EUDR
In brief
On 4 May 2026, the European Commission published its long‑awaited report on the simplification of the EU Deforestation Regulation (EUDR), accompanied by an updated guidance document, updated Frequently Asked Questions (FAQ) and a draft Delegated Act amending the EUDR’s product scope. The measures are expected to reduce annual compliance costs for companies subject to EUDR obligations by about 75% compared to the original EUDR. At the same time, the report signals regulatory certainty by highlighting that the EUDR will not be reopened and that the existing timelines for its implementation continue to apply.
This client alert highlights the key modifications of the proposed changes.
In depth
Modifying the product scope
The draft Delegated Act proposes to reduce the product scope of the EUDR set out in Annex I of the Regulation by:
Removing several categories of cattle hides, skins, and leather products including raw bovine hides and skins, tanned or crust bovine hides and skins without hair and further prepared leather (Harmonized System (HS) codes ex 4101, 4104, 4107), as well as retreaded tyres, particularly relevant for the automotive and transport sector;
Clarifying that waste, used, and second‑hand products fall outside the scope of the EUDR;
Exempting product samples and products used for examination, analysis, or testing; and
Excluding items and correspondence entirely from the EUDR’s scope.
At the same time, the draft Delegated Act also proposes to extend the product scope, most notably to soluble coffee, palm oil derivatives (for example, soap made with palm oil), and frozen cattle tongues.
These proposed changes to the product scope likely affect a variety of industries, including the automotive and transport industry, the fashion industry, the consumer good and retail sector as well as the chemical industry.
Clarifying extent of due diligence obligations of upstream operators
To specify the extent of the obligation of upstream operators to exercise due diligence with respect to the compliance of relevant products with the national law, the Commission plans to establish a repository of relevant legislation on a dedicated website by December 2026. Countries of production will be able to contribute lists of their applicable legislation. Similarly, the Commission intends to establish a web‑based repository of certification schemes applicable to EUDR‑relevant commodities. With these measures, the Commission addresses two of the major challenges companies were facing when implementing the EUDR.
While the updated guidance document elaborates on simplified due diligence obligations for commodities and products originating from low-risk countries, the simplification package does not introduce a “no‑risk” or “negligible‑risk” country classification that would fully exempt operators from their obligations.
Downstream supply chain obligations
The Commission further clarifies that first downstream operators or traders are not required to actively request reference numbers or declaration identifiers. Instead, they can rely on upstream operators to pass on reference numbers or declaration identifiers.
It also clarifies that re‑importing products qualifies as a downstream activity. This means that importers who can demonstrate that a product has previously been placed on the EU market will also benefit from the reduced due diligence obligations for downstream entities.
Downstream entities would, however, remain obligated to inform the competent authorities where they have information indicating non-compliance with the EUDR. The guidance documents provide practical direction on how downstream actors can verify the exercise of required due diligence by upstream actors where substantiated concerns arise. This includes checking the validity of reference numbers and declaration identifiers, consulting additional sources (e.g., benchmarking or publicly available reports), or requesting further information from their suppliers.
Information system
The Commission intends to relaunch the information system, to which due diligence statements must be submitted, in June 2026. Subsequent updates introducing additional functionalities are scheduled for later in the summer, ahead of the EUDR’s application. These updates will reflect the legislative changes made to the EUDR, allowing for the registration of micro and small primary operators, downstream operators, and traders, as well as for the submission of simplified declarations.
Next steps
Against this background, companies should:
Continue to prepare for compliance with the EUDR by 30 December 2026 (large and medium-sized companies) or 30 June 2027 (small and micro-sized companies);
Re-evaluate their scoping exercise to determine which products continue to be covered products by the EUDR;
Monitor the ongoing legislative process with respect to the delegated act and consider providing feedback to the Commission until 1 June 2026; and Review and adapt their compliance system to the applicable due diligence obligations. Baker McKenzie
Biodiesel demand booms amidst Middle East conflict
The closure of the Strait of Hormuz has cut off more than 14 million barrels of crude oil per day from the global supply
ASKATOON — Global demand for bio-based diesel is soaring, which is spurring consumption of vegetable oil feedstocks.
“This is massive,” said Fred Ghatala, president of Advanced Biofuels Canada.
“It is very apparent that the energy security benefits of biofuels are being leaned on around the globe, especially in countries with the fastest growth in fuel demand.”
The closure of the Strait of Hormuz has cut off more than 14 million barrels of crude oil per day from the global supply, and that is reinforcing plans that were already in the works to diversify fuel supplies in many countries.
The U.S. Environmental Protection Agency recently announced its final Renewable Volume Obligation (RVO) blending rule for biomass-based diesel.
The EPA set the blending mandate for biodiesel and renewable diesel to 5.4 billion gallons in 2026 and 5.5 billion gallons in 2027.
That is a 61 to 64 per cent increase over the 2025 level of 3.35 billion gallons. Producer
---------
European Union: EU Commission Publishes Simplification Review of EUDR
In brief
On 4 May 2026, the European Commission published its long‑awaited report on the simplification of the EU Deforestation Regulation (EUDR), accompanied by an updated guidance document, updated Frequently Asked Questions (FAQ) and a draft Delegated Act amending the EUDR’s product scope. The measures are expected to reduce annual compliance costs for companies subject to EUDR obligations by about 75% compared to the original EUDR. At the same time, the report signals regulatory certainty by highlighting that the EUDR will not be reopened and that the existing timelines for its implementation continue to apply.
This client alert highlights the key modifications of the proposed changes.
In depth
Modifying the product scope
The draft Delegated Act proposes to reduce the product scope of the EUDR set out in Annex I of the Regulation by:
Removing several categories of cattle hides, skins, and leather products including raw bovine hides and skins, tanned or crust bovine hides and skins without hair and further prepared leather (Harmonized System (HS) codes ex 4101, 4104, 4107), as well as retreaded tyres, particularly relevant for the automotive and transport sector;
Clarifying that waste, used, and second‑hand products fall outside the scope of the EUDR;
Exempting product samples and products used for examination, analysis, or testing; and
Excluding items and correspondence entirely from the EUDR’s scope.
At the same time, the draft Delegated Act also proposes to extend the product scope, most notably to soluble coffee, palm oil derivatives (for example, soap made with palm oil), and frozen cattle tongues.
These proposed changes to the product scope likely affect a variety of industries, including the automotive and transport industry, the fashion industry, the consumer good and retail sector as well as the chemical industry.
Clarifying extent of due diligence obligations of upstream operators
To specify the extent of the obligation of upstream operators to exercise due diligence with respect to the compliance of relevant products with the national law, the Commission plans to establish a repository of relevant legislation on a dedicated website by December 2026. Countries of production will be able to contribute lists of their applicable legislation. Similarly, the Commission intends to establish a web‑based repository of certification schemes applicable to EUDR‑relevant commodities. With these measures, the Commission addresses two of the major challenges companies were facing when implementing the EUDR.
While the updated guidance document elaborates on simplified due diligence obligations for commodities and products originating from low-risk countries, the simplification package does not introduce a “no‑risk” or “negligible‑risk” country classification that would fully exempt operators from their obligations.
Downstream supply chain obligations
The Commission further clarifies that first downstream operators or traders are not required to actively request reference numbers or declaration identifiers. Instead, they can rely on upstream operators to pass on reference numbers or declaration identifiers.
It also clarifies that re‑importing products qualifies as a downstream activity. This means that importers who can demonstrate that a product has previously been placed on the EU market will also benefit from the reduced due diligence obligations for downstream entities.
Downstream entities would, however, remain obligated to inform the competent authorities where they have information indicating non-compliance with the EUDR. The guidance documents provide practical direction on how downstream actors can verify the exercise of required due diligence by upstream actors where substantiated concerns arise. This includes checking the validity of reference numbers and declaration identifiers, consulting additional sources (e.g., benchmarking or publicly available reports), or requesting further information from their suppliers.
Information system
The Commission intends to relaunch the information system, to which due diligence statements must be submitted, in June 2026. Subsequent updates introducing additional functionalities are scheduled for later in the summer, ahead of the EUDR’s application. These updates will reflect the legislative changes made to the EUDR, allowing for the registration of micro and small primary operators, downstream operators, and traders, as well as for the submission of simplified declarations.
Next steps
Against this background, companies should:
Continue to prepare for compliance with the EUDR by 30 December 2026 (large and medium-sized companies) or 30 June 2027 (small and micro-sized companies);
Re-evaluate their scoping exercise to determine which products continue to be covered products by the EUDR;
Monitor the ongoing legislative process with respect to the delegated act and consider providing feedback to the Commission until 1 June 2026; and Review and adapt their compliance system to the applicable due diligence obligations. Baker McKenzie
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May 07, 2026
Energy shock and conflict tighten global palm oil supply
Rising geopolitical tensions between the US and Iran are sending shockwaves through global commodity markets, triggering an energy-driven supply squeeze that is rapidly reshaping the outlook for palm oil.
At the heart of the disruption are threats to key maritime routes, particularly the Strait of Hormuz and the Red Sea. These critical arteries for global energy and commodity trade have come under increasing strain, pushing fuel prices sharply higher. Over the past month alone, gasoil prices have surged by 86%, while crude oil has climbed 31%.
This energy shock is now feeding directly into vegetable oil markets, with palm oil emerging as one of the biggest beneficiaries.
Palm oil gains as biofuel economics shift
Palm oil prices have rallied strongly in recent weeks, underpinned by their growing link to the energy complex.
Since the escalation of the West Asia conflict on Feb 28, crude palm oil futures on Bursa Malaysia had risen 11% as at April 17, while physical prices in Europe were up 10%. Soybean oil also strengthened, gaining 12% in the US and 4% in Argentina over the same period.
However, other major vegetable oils such as sunflower and rapeseed showed modest gains, reflecting weaker policy support and less direct exposure to biofuel demand.
The key driver is the sharp narrowing in the palm oil-gasoil (POGO) spread, which tightened by 79% — from US$310 per tonne on Feb 23 to US$24 per tonne on April 17. As gasoil prices outpace palm oil, the economics of biodiesel production have improved significantly, making palm oil a more attractive feedstock.
US biofuel policy adds further support
Policy developments in the US are reinforcing these market dynamics. On March 26, the Environmental Protection Agency issued its final rule setting renewable volume obligations under the Renewable Fuel Standard (RFS) for 2026 and 2027. The agency confirmed higher blending targets than those proposed in June last year, despite rising consumer fuel prices linked to ongoing geopolitical tensions, including the Iran conflict.
The RFS remains a key driver of demand for clean fuels, requiring refiners to either blend specified volumes of biofuels or purchase compliance credits — known as Renewable Identification Numbers — based on their gasoline and diesel output.
Higher US biofuel mandates are expected to increase demand for domestically produced feedstocks such as soybean oil, tightening global vegetable oil supplies. This, in turn, is likely to trigger substitution effects across the wider oils and fats complex, lending additional upward support to crude palm oil prices.
A strategic commodity beyond food
Palm oil, the world’s most widely consumed vegetable oil, plays a dual role in global markets. It is a staple ingredient in food products as well as a key input in consumer goods.
Increasingly, however, it is also an energy commodity. Indonesia has expanded biodiesel blending mandates over the past decade, tying palm oil demand more closely to fuel markets. This dual function means that geopolitical shocks — especially those affecting oil prices — can have immediate and far-reaching effects on palm oil supply and demand.
Southeast Asia prioritises energy security
Governments across Southeast Asia are accelerating efforts to secure domestic energy supply, with biodiesel policies playing a central role in reshaping palm oil demand.
Indonesia is preparing to implement a B50 biodiesel mandate in July, initially targeting the public service obligation (subsidised diesel) segment. This phase alone could absorb an additional 1.5 million tonnes of palm oil annually. The non-subsidised segment is expected to adopt B50 by 2028. Once fully implemented, total biodiesel consumption could reach 15 million to 16 million tonnes, significantly tightening exportable supply.
Thailand has adopted a more immediate intervention. Since April 7, exports of crude palm oil require government approval, with controls expected to remain in place for up to one year. The measures are complemented by B20 blending under its biodiesel subsidy programme. Although Thailand is a relatively small exporter, the policy underscores a broader regional shift — energy security is increasingly taking precedence over export expansion.
Malaysia is also advancing its biodiesel strategy, with plans to raise the mandate from B10 to B15, beginning with B12 — a level that can be supported by existing infrastructure without major upgrades. Malaysia has maintained its B10 mandate since 2019, largely due to historically high crude palm oil prices, but there is considerable scope for expansion given installed biodiesel capacity of 2.4 million tonnes and utilisation rates below 50%. The policy supports domestic palm oil demand while reinforcing the government’s longer-term commitment to biodiesel expansion and enhances energy security by reducing dependence on imported diesel, particularly as domestic fuel prices have surged by nearly 90% — from RM3.15/litre on Feb 27 to RM5.97/litre on April 17 amid escalating tensions in West Asia. A transition toward B15 represents a strategic response to global fuel market volatility, with limited impact on retail fuel prices, while potentially reducing reliance on imported diesel by about 5% and providing a more stable and predictable source of domestic demand.
The overall impact on palm oil supply and demand will depend on the pace of implementation. Between 2020 and 2025, Malaysia’s biodiesel production averaged 1.05 million tonnes, with exports at around 300,000 tonnes, implying domestic consumption of about 700,000 tonnes annually under the B10 mandate.
A shift to B12 would increase domestic usage by an estimated 140,000 tonnes, while a move to B15 would require an additional 300,000 tonnes. Even under B15, biodiesel consumption would account for only 4% to 5% of Malaysia’s total palm oil production, suggesting a relatively modest impact on export availability.
From a price perspective, palm oil markets remain supported by elevated crude oil prices and stronger biodiesel demand, underpinned by a favourable POGO spread. Across major producing countries, rising domestic consumption is gradually tightening exportable supply.
Rising geopolitical tensions between the US and Iran are sending shockwaves through global commodity markets, triggering an energy-driven supply squeeze that is rapidly reshaping the outlook for palm oil.
At the heart of the disruption are threats to key maritime routes, particularly the Strait of Hormuz and the Red Sea. These critical arteries for global energy and commodity trade have come under increasing strain, pushing fuel prices sharply higher. Over the past month alone, gasoil prices have surged by 86%, while crude oil has climbed 31%.
This energy shock is now feeding directly into vegetable oil markets, with palm oil emerging as one of the biggest beneficiaries.
Palm oil gains as biofuel economics shift
Palm oil prices have rallied strongly in recent weeks, underpinned by their growing link to the energy complex.
Since the escalation of the West Asia conflict on Feb 28, crude palm oil futures on Bursa Malaysia had risen 11% as at April 17, while physical prices in Europe were up 10%. Soybean oil also strengthened, gaining 12% in the US and 4% in Argentina over the same period.
However, other major vegetable oils such as sunflower and rapeseed showed modest gains, reflecting weaker policy support and less direct exposure to biofuel demand.
The key driver is the sharp narrowing in the palm oil-gasoil (POGO) spread, which tightened by 79% — from US$310 per tonne on Feb 23 to US$24 per tonne on April 17. As gasoil prices outpace palm oil, the economics of biodiesel production have improved significantly, making palm oil a more attractive feedstock.
US biofuel policy adds further support
Policy developments in the US are reinforcing these market dynamics. On March 26, the Environmental Protection Agency issued its final rule setting renewable volume obligations under the Renewable Fuel Standard (RFS) for 2026 and 2027. The agency confirmed higher blending targets than those proposed in June last year, despite rising consumer fuel prices linked to ongoing geopolitical tensions, including the Iran conflict.
The RFS remains a key driver of demand for clean fuels, requiring refiners to either blend specified volumes of biofuels or purchase compliance credits — known as Renewable Identification Numbers — based on their gasoline and diesel output.
Higher US biofuel mandates are expected to increase demand for domestically produced feedstocks such as soybean oil, tightening global vegetable oil supplies. This, in turn, is likely to trigger substitution effects across the wider oils and fats complex, lending additional upward support to crude palm oil prices.
A strategic commodity beyond food
Palm oil, the world’s most widely consumed vegetable oil, plays a dual role in global markets. It is a staple ingredient in food products as well as a key input in consumer goods.
Increasingly, however, it is also an energy commodity. Indonesia has expanded biodiesel blending mandates over the past decade, tying palm oil demand more closely to fuel markets. This dual function means that geopolitical shocks — especially those affecting oil prices — can have immediate and far-reaching effects on palm oil supply and demand.
Southeast Asia prioritises energy security
Governments across Southeast Asia are accelerating efforts to secure domestic energy supply, with biodiesel policies playing a central role in reshaping palm oil demand.
Indonesia is preparing to implement a B50 biodiesel mandate in July, initially targeting the public service obligation (subsidised diesel) segment. This phase alone could absorb an additional 1.5 million tonnes of palm oil annually. The non-subsidised segment is expected to adopt B50 by 2028. Once fully implemented, total biodiesel consumption could reach 15 million to 16 million tonnes, significantly tightening exportable supply.
Thailand has adopted a more immediate intervention. Since April 7, exports of crude palm oil require government approval, with controls expected to remain in place for up to one year. The measures are complemented by B20 blending under its biodiesel subsidy programme. Although Thailand is a relatively small exporter, the policy underscores a broader regional shift — energy security is increasingly taking precedence over export expansion.
Malaysia is also advancing its biodiesel strategy, with plans to raise the mandate from B10 to B15, beginning with B12 — a level that can be supported by existing infrastructure without major upgrades. Malaysia has maintained its B10 mandate since 2019, largely due to historically high crude palm oil prices, but there is considerable scope for expansion given installed biodiesel capacity of 2.4 million tonnes and utilisation rates below 50%. The policy supports domestic palm oil demand while reinforcing the government’s longer-term commitment to biodiesel expansion and enhances energy security by reducing dependence on imported diesel, particularly as domestic fuel prices have surged by nearly 90% — from RM3.15/litre on Feb 27 to RM5.97/litre on April 17 amid escalating tensions in West Asia. A transition toward B15 represents a strategic response to global fuel market volatility, with limited impact on retail fuel prices, while potentially reducing reliance on imported diesel by about 5% and providing a more stable and predictable source of domestic demand.
The overall impact on palm oil supply and demand will depend on the pace of implementation. Between 2020 and 2025, Malaysia’s biodiesel production averaged 1.05 million tonnes, with exports at around 300,000 tonnes, implying domestic consumption of about 700,000 tonnes annually under the B10 mandate.
A shift to B12 would increase domestic usage by an estimated 140,000 tonnes, while a move to B15 would require an additional 300,000 tonnes. Even under B15, biodiesel consumption would account for only 4% to 5% of Malaysia’s total palm oil production, suggesting a relatively modest impact on export availability.
From a price perspective, palm oil markets remain supported by elevated crude oil prices and stronger biodiesel demand, underpinned by a favourable POGO spread. Across major producing countries, rising domestic consumption is gradually tightening exportable supply. The Edge
---------
Palm oil rally seen continuing on biodiesel demand boost, analyst Mistry says
By Rajendra Jadhav
MUMBAI, May 6 (Reuters) - Malaysian palm oil prices are likely to rise about 12% to 5,200 ringgit ($1,316) a metric ton by mid-July, as higher energy prices from the U.S.-Israeli war on Iran boost biodiesel demand and tighten supplies, analyst Dorab Mistry said on Wednesday.
The benchmark palm oil contract on the Bursa Malaysia Derivatives Exchange fell 1.34% to 4,647 ringgit at the midday break on Wednesday, though it is up about 15% since the war began in late February.
Palm oil futures are expected to extend gains to around 5,000 ringgit by June and potentially reach 5,200 ringgit by mid-July on biodiesel demand, said Mistry, the director of Indian consumer goods company Godrej International.
One of the most closely watched analysts of edible oils, Mistry's forecasts for supply and prices often move markets.
Global oil prices hit a four-year high of more than $126 a barrel last week. This rally has made the use of vegetable oils for biofuel production more attractive.
Refined fuels like diesel and gasoline rose more sharply than crude after the Iran war began, Mistry said
As a result, the spread between fossil diesel and palm biodiesel narrowed, cutting subsidy requirements and - in some markets - making palm biodiesel cheaper than fossil diesel, he said.
"Rising energy prices prompted Indonesia to reinstate its B50 palm biodiesel programme from 1 July 2026," Mistry said. "Biodiesel mandates are being increased in other countries like Malaysia, Thailand and others too."
Indonesia, the world's biggest palm oil producer, said it would raise the mandatory blending rate for palm-based biodiesel to 50% from 40% on July 1.
Palm oil competes with soyoil, which has rallied in recent weeks as top producers - the U.S., Brazil and Argentina - increase its use for biofuels.
"The U.S. has announced its long-awaited jumbo biodiesel programme for 2026 and 2027, which has, as expected, lit a fuse under soybean oil futures," Mistry said.
Higher edible oil prices are leading to demand destruction in key consuming countries like India, where stocks have fallen and imports will need to be stepped up from June, he said.
https://www.reuters.com/sustainability/climate-energy/palm-oil-rally-seen-continuing-biodiesel-demand-boost-analyst-mistry-says-2026-05-06/#:~:text=Palm%20oil%20futures,began%2C%20Mistry%20said
---------
Palm Oil Prices Set to Surge Amid Escalating Global Tensions
Malaysian palm oil prices are projected to climb by 12% due to increased biodiesel demand triggered by higher energy prices amid geopolitical tensions. Analyst Dorab Mistry forecasts a rise to 5,200 ringgit per metric ton by mid-July, with the rally bolstered by new biodiesel mandates in key producing countries.
Amid escalating geopolitical tensions, Malaysian palm oil prices are predicted to surge by approximately 12%, reaching 5,200 ringgit per metric ton by mid-July. This anticipated increase is largely attributed to heightened demand for biodiesel, driven by rising energy prices stemming from the U.S.-Israeli conflict with Iran.
The benchmark palm oil contract on the Bursa Malaysia Derivatives Exchange saw a decline of 1.34% to 4,647 ringgit on Wednesday; however, it has gained about 15% since the onset of hostilities in late February. According to Dorab Mistry, director of Indian consumer goods company Godrej International, this upward trend is expected to continue, potentially reaching 5,200 ringgit fueled by robust biodiesel demand.
Global oil prices recently soared to a four-year peak, exceeding $126 a barrel, making the biofuel industry increasingly attractive. The narrowing price differential between fossil diesel and palm biodiesel has resulted in reduced subsidy needs, and in some markets, palm biodiesel has even become cheaper than its fossil fuel counterpart. Consequently, major palm oil producers are revamping their biodiesel programs to boost demand and support market growth. Devdiscourse
---------
European Commission Releases New EU Deforestation Regulation Measures
Posted on May 7, 2026
Posted in Environmental Regulation, Environmental, Social, and Governance, European Environmental and Public Law
The measures include a new delegated act on scope, updated FAQs, and an updated guidance document.
By Michael D. Green and James Bee
The measures include: (1) a simplification review report; (2) updated FAQs and an updated guidance document; (3) a draft delegated act on the product scope (published for a four-week public feedback period); and (4) updates to the Information System by way of a draft implementing act.
In this blog post, we set out the background and status of the EUDR, and summarise elements of the measures. Global ELR
---------
European Commission’s proposed regulatory update would phase out use of soybean-based biofuels
The European Commission in April adopted a delegated regulation to update the methodology and data for high indirect land use change (ILUC) risk biofuels. The change, if adopted by the European Council and European Parliament, is expected to phase out the use of soybean oil as a biofuel feedstock in the European Union by 2030, according to a report filed with the USDA Foreign Agricultural Service’s Global Agricultural Information Network.
The EU Renewable Energy Directive II introduced specific rules for high-risk ILUC biofuels. Under current rules, the Commission defines high ILUC-risk feedstock as feedstock for which the share of expansion into land with high-carbon stocks is higher than 10% since 2008, with an annual expansion of more than 1%. Only palm oil qualifies as a high ILUC-risk feedstock under that calculation.
The delegated regulation adopted by the European Commission on April 10 proposes to amend the methodology by which high-risk ILUC feedstocks are measured. It also proposes to use 2014 data, as opposed to the current 2008 data.
Under the proposed calculations, both palm oil and soybean would surpass the threshold for high ILUC-risk feedstocks. Biomass Magazine
Energy shock and conflict tighten global palm oil supply
Rising geopolitical tensions between the US and Iran are sending shockwaves through global commodity markets, triggering an energy-driven supply squeeze that is rapidly reshaping the outlook for palm oil.
At the heart of the disruption are threats to key maritime routes, particularly the Strait of Hormuz and the Red Sea. These critical arteries for global energy and commodity trade have come under increasing strain, pushing fuel prices sharply higher. Over the past month alone, gasoil prices have surged by 86%, while crude oil has climbed 31%.
This energy shock is now feeding directly into vegetable oil markets, with palm oil emerging as one of the biggest beneficiaries.
Palm oil gains as biofuel economics shift
Palm oil prices have rallied strongly in recent weeks, underpinned by their growing link to the energy complex.
Since the escalation of the West Asia conflict on Feb 28, crude palm oil futures on Bursa Malaysia had risen 11% as at April 17, while physical prices in Europe were up 10%. Soybean oil also strengthened, gaining 12% in the US and 4% in Argentina over the same period.
However, other major vegetable oils such as sunflower and rapeseed showed modest gains, reflecting weaker policy support and less direct exposure to biofuel demand.
The key driver is the sharp narrowing in the palm oil-gasoil (POGO) spread, which tightened by 79% — from US$310 per tonne on Feb 23 to US$24 per tonne on April 17. As gasoil prices outpace palm oil, the economics of biodiesel production have improved significantly, making palm oil a more attractive feedstock.
US biofuel policy adds further support
Policy developments in the US are reinforcing these market dynamics. On March 26, the Environmental Protection Agency issued its final rule setting renewable volume obligations under the Renewable Fuel Standard (RFS) for 2026 and 2027. The agency confirmed higher blending targets than those proposed in June last year, despite rising consumer fuel prices linked to ongoing geopolitical tensions, including the Iran conflict.
The RFS remains a key driver of demand for clean fuels, requiring refiners to either blend specified volumes of biofuels or purchase compliance credits — known as Renewable Identification Numbers — based on their gasoline and diesel output.
Higher US biofuel mandates are expected to increase demand for domestically produced feedstocks such as soybean oil, tightening global vegetable oil supplies. This, in turn, is likely to trigger substitution effects across the wider oils and fats complex, lending additional upward support to crude palm oil prices.
A strategic commodity beyond food
Palm oil, the world’s most widely consumed vegetable oil, plays a dual role in global markets. It is a staple ingredient in food products as well as a key input in consumer goods.
Increasingly, however, it is also an energy commodity. Indonesia has expanded biodiesel blending mandates over the past decade, tying palm oil demand more closely to fuel markets. This dual function means that geopolitical shocks — especially those affecting oil prices — can have immediate and far-reaching effects on palm oil supply and demand.
Southeast Asia prioritises energy security
Governments across Southeast Asia are accelerating efforts to secure domestic energy supply, with biodiesel policies playing a central role in reshaping palm oil demand.
Indonesia is preparing to implement a B50 biodiesel mandate in July, initially targeting the public service obligation (subsidised diesel) segment. This phase alone could absorb an additional 1.5 million tonnes of palm oil annually. The non-subsidised segment is expected to adopt B50 by 2028. Once fully implemented, total biodiesel consumption could reach 15 million to 16 million tonnes, significantly tightening exportable supply.
Thailand has adopted a more immediate intervention. Since April 7, exports of crude palm oil require government approval, with controls expected to remain in place for up to one year. The measures are complemented by B20 blending under its biodiesel subsidy programme. Although Thailand is a relatively small exporter, the policy underscores a broader regional shift — energy security is increasingly taking precedence over export expansion.
Malaysia is also advancing its biodiesel strategy, with plans to raise the mandate from B10 to B15, beginning with B12 — a level that can be supported by existing infrastructure without major upgrades. Malaysia has maintained its B10 mandate since 2019, largely due to historically high crude palm oil prices, but there is considerable scope for expansion given installed biodiesel capacity of 2.4 million tonnes and utilisation rates below 50%. The policy supports domestic palm oil demand while reinforcing the government’s longer-term commitment to biodiesel expansion and enhances energy security by reducing dependence on imported diesel, particularly as domestic fuel prices have surged by nearly 90% — from RM3.15/litre on Feb 27 to RM5.97/litre on April 17 amid escalating tensions in West Asia. A transition toward B15 represents a strategic response to global fuel market volatility, with limited impact on retail fuel prices, while potentially reducing reliance on imported diesel by about 5% and providing a more stable and predictable source of domestic demand.
The overall impact on palm oil supply and demand will depend on the pace of implementation. Between 2020 and 2025, Malaysia’s biodiesel production averaged 1.05 million tonnes, with exports at around 300,000 tonnes, implying domestic consumption of about 700,000 tonnes annually under the B10 mandate.
A shift to B12 would increase domestic usage by an estimated 140,000 tonnes, while a move to B15 would require an additional 300,000 tonnes. Even under B15, biodiesel consumption would account for only 4% to 5% of Malaysia’s total palm oil production, suggesting a relatively modest impact on export availability.
From a price perspective, palm oil markets remain supported by elevated crude oil prices and stronger biodiesel demand, underpinned by a favourable POGO spread. Across major producing countries, rising domestic consumption is gradually tightening exportable supply.
Rising geopolitical tensions between the US and Iran are sending shockwaves through global commodity markets, triggering an energy-driven supply squeeze that is rapidly reshaping the outlook for palm oil.
At the heart of the disruption are threats to key maritime routes, particularly the Strait of Hormuz and the Red Sea. These critical arteries for global energy and commodity trade have come under increasing strain, pushing fuel prices sharply higher. Over the past month alone, gasoil prices have surged by 86%, while crude oil has climbed 31%.
This energy shock is now feeding directly into vegetable oil markets, with palm oil emerging as one of the biggest beneficiaries.
Palm oil gains as biofuel economics shift
Palm oil prices have rallied strongly in recent weeks, underpinned by their growing link to the energy complex.
Since the escalation of the West Asia conflict on Feb 28, crude palm oil futures on Bursa Malaysia had risen 11% as at April 17, while physical prices in Europe were up 10%. Soybean oil also strengthened, gaining 12% in the US and 4% in Argentina over the same period.
However, other major vegetable oils such as sunflower and rapeseed showed modest gains, reflecting weaker policy support and less direct exposure to biofuel demand.
The key driver is the sharp narrowing in the palm oil-gasoil (POGO) spread, which tightened by 79% — from US$310 per tonne on Feb 23 to US$24 per tonne on April 17. As gasoil prices outpace palm oil, the economics of biodiesel production have improved significantly, making palm oil a more attractive feedstock.
US biofuel policy adds further support
Policy developments in the US are reinforcing these market dynamics. On March 26, the Environmental Protection Agency issued its final rule setting renewable volume obligations under the Renewable Fuel Standard (RFS) for 2026 and 2027. The agency confirmed higher blending targets than those proposed in June last year, despite rising consumer fuel prices linked to ongoing geopolitical tensions, including the Iran conflict.
The RFS remains a key driver of demand for clean fuels, requiring refiners to either blend specified volumes of biofuels or purchase compliance credits — known as Renewable Identification Numbers — based on their gasoline and diesel output.
Higher US biofuel mandates are expected to increase demand for domestically produced feedstocks such as soybean oil, tightening global vegetable oil supplies. This, in turn, is likely to trigger substitution effects across the wider oils and fats complex, lending additional upward support to crude palm oil prices.
A strategic commodity beyond food
Palm oil, the world’s most widely consumed vegetable oil, plays a dual role in global markets. It is a staple ingredient in food products as well as a key input in consumer goods.
Increasingly, however, it is also an energy commodity. Indonesia has expanded biodiesel blending mandates over the past decade, tying palm oil demand more closely to fuel markets. This dual function means that geopolitical shocks — especially those affecting oil prices — can have immediate and far-reaching effects on palm oil supply and demand.
Southeast Asia prioritises energy security
Governments across Southeast Asia are accelerating efforts to secure domestic energy supply, with biodiesel policies playing a central role in reshaping palm oil demand.
Indonesia is preparing to implement a B50 biodiesel mandate in July, initially targeting the public service obligation (subsidised diesel) segment. This phase alone could absorb an additional 1.5 million tonnes of palm oil annually. The non-subsidised segment is expected to adopt B50 by 2028. Once fully implemented, total biodiesel consumption could reach 15 million to 16 million tonnes, significantly tightening exportable supply.
Thailand has adopted a more immediate intervention. Since April 7, exports of crude palm oil require government approval, with controls expected to remain in place for up to one year. The measures are complemented by B20 blending under its biodiesel subsidy programme. Although Thailand is a relatively small exporter, the policy underscores a broader regional shift — energy security is increasingly taking precedence over export expansion.
Malaysia is also advancing its biodiesel strategy, with plans to raise the mandate from B10 to B15, beginning with B12 — a level that can be supported by existing infrastructure without major upgrades. Malaysia has maintained its B10 mandate since 2019, largely due to historically high crude palm oil prices, but there is considerable scope for expansion given installed biodiesel capacity of 2.4 million tonnes and utilisation rates below 50%. The policy supports domestic palm oil demand while reinforcing the government’s longer-term commitment to biodiesel expansion and enhances energy security by reducing dependence on imported diesel, particularly as domestic fuel prices have surged by nearly 90% — from RM3.15/litre on Feb 27 to RM5.97/litre on April 17 amid escalating tensions in West Asia. A transition toward B15 represents a strategic response to global fuel market volatility, with limited impact on retail fuel prices, while potentially reducing reliance on imported diesel by about 5% and providing a more stable and predictable source of domestic demand.
The overall impact on palm oil supply and demand will depend on the pace of implementation. Between 2020 and 2025, Malaysia’s biodiesel production averaged 1.05 million tonnes, with exports at around 300,000 tonnes, implying domestic consumption of about 700,000 tonnes annually under the B10 mandate.
A shift to B12 would increase domestic usage by an estimated 140,000 tonnes, while a move to B15 would require an additional 300,000 tonnes. Even under B15, biodiesel consumption would account for only 4% to 5% of Malaysia’s total palm oil production, suggesting a relatively modest impact on export availability.
From a price perspective, palm oil markets remain supported by elevated crude oil prices and stronger biodiesel demand, underpinned by a favourable POGO spread. Across major producing countries, rising domestic consumption is gradually tightening exportable supply. The Edge
---------
Palm oil rally seen continuing on biodiesel demand boost, analyst Mistry says
By Rajendra Jadhav
MUMBAI, May 6 (Reuters) - Malaysian palm oil prices are likely to rise about 12% to 5,200 ringgit ($1,316) a metric ton by mid-July, as higher energy prices from the U.S.-Israeli war on Iran boost biodiesel demand and tighten supplies, analyst Dorab Mistry said on Wednesday.
The benchmark palm oil contract on the Bursa Malaysia Derivatives Exchange fell 1.34% to 4,647 ringgit at the midday break on Wednesday, though it is up about 15% since the war began in late February.
Palm oil futures are expected to extend gains to around 5,000 ringgit by June and potentially reach 5,200 ringgit by mid-July on biodiesel demand, said Mistry, the director of Indian consumer goods company Godrej International.
One of the most closely watched analysts of edible oils, Mistry's forecasts for supply and prices often move markets.
Global oil prices hit a four-year high of more than $126 a barrel last week. This rally has made the use of vegetable oils for biofuel production more attractive.
Refined fuels like diesel and gasoline rose more sharply than crude after the Iran war began, Mistry said
As a result, the spread between fossil diesel and palm biodiesel narrowed, cutting subsidy requirements and - in some markets - making palm biodiesel cheaper than fossil diesel, he said.
"Rising energy prices prompted Indonesia to reinstate its B50 palm biodiesel programme from 1 July 2026," Mistry said. "Biodiesel mandates are being increased in other countries like Malaysia, Thailand and others too."
Indonesia, the world's biggest palm oil producer, said it would raise the mandatory blending rate for palm-based biodiesel to 50% from 40% on July 1.
Palm oil competes with soyoil, which has rallied in recent weeks as top producers - the U.S., Brazil and Argentina - increase its use for biofuels.
"The U.S. has announced its long-awaited jumbo biodiesel programme for 2026 and 2027, which has, as expected, lit a fuse under soybean oil futures," Mistry said.
Higher edible oil prices are leading to demand destruction in key consuming countries like India, where stocks have fallen and imports will need to be stepped up from June, he said.
https://www.reuters.com/sustainability/climate-energy/palm-oil-rally-seen-continuing-biodiesel-demand-boost-analyst-mistry-says-2026-05-06/#:~:text=Palm%20oil%20futures,began%2C%20Mistry%20said
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Palm Oil Prices Set to Surge Amid Escalating Global Tensions
Malaysian palm oil prices are projected to climb by 12% due to increased biodiesel demand triggered by higher energy prices amid geopolitical tensions. Analyst Dorab Mistry forecasts a rise to 5,200 ringgit per metric ton by mid-July, with the rally bolstered by new biodiesel mandates in key producing countries.
Amid escalating geopolitical tensions, Malaysian palm oil prices are predicted to surge by approximately 12%, reaching 5,200 ringgit per metric ton by mid-July. This anticipated increase is largely attributed to heightened demand for biodiesel, driven by rising energy prices stemming from the U.S.-Israeli conflict with Iran.
The benchmark palm oil contract on the Bursa Malaysia Derivatives Exchange saw a decline of 1.34% to 4,647 ringgit on Wednesday; however, it has gained about 15% since the onset of hostilities in late February. According to Dorab Mistry, director of Indian consumer goods company Godrej International, this upward trend is expected to continue, potentially reaching 5,200 ringgit fueled by robust biodiesel demand.
Global oil prices recently soared to a four-year peak, exceeding $126 a barrel, making the biofuel industry increasingly attractive. The narrowing price differential between fossil diesel and palm biodiesel has resulted in reduced subsidy needs, and in some markets, palm biodiesel has even become cheaper than its fossil fuel counterpart. Consequently, major palm oil producers are revamping their biodiesel programs to boost demand and support market growth. Devdiscourse
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European Commission Releases New EU Deforestation Regulation Measures
Posted on May 7, 2026
Posted in Environmental Regulation, Environmental, Social, and Governance, European Environmental and Public Law
The measures include a new delegated act on scope, updated FAQs, and an updated guidance document.
By Michael D. Green and James Bee
- The Commission has unveiled a package of EUDR measures aimed at providing guidance and easing implementation.
- The delegated act will adjust the range of commodities and products falling within the EUDR’s scope.
- The Commission has confirmed that it will not reopen the text of the EUDR, so companies should continue preparing for the 30 December 2026 application date (or 30 June 2027 for micro and small operators).
The measures include: (1) a simplification review report; (2) updated FAQs and an updated guidance document; (3) a draft delegated act on the product scope (published for a four-week public feedback period); and (4) updates to the Information System by way of a draft implementing act.
In this blog post, we set out the background and status of the EUDR, and summarise elements of the measures. Global ELR
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European Commission’s proposed regulatory update would phase out use of soybean-based biofuels
The European Commission in April adopted a delegated regulation to update the methodology and data for high indirect land use change (ILUC) risk biofuels. The change, if adopted by the European Council and European Parliament, is expected to phase out the use of soybean oil as a biofuel feedstock in the European Union by 2030, according to a report filed with the USDA Foreign Agricultural Service’s Global Agricultural Information Network.
The EU Renewable Energy Directive II introduced specific rules for high-risk ILUC biofuels. Under current rules, the Commission defines high ILUC-risk feedstock as feedstock for which the share of expansion into land with high-carbon stocks is higher than 10% since 2008, with an annual expansion of more than 1%. Only palm oil qualifies as a high ILUC-risk feedstock under that calculation.
The delegated regulation adopted by the European Commission on April 10 proposes to amend the methodology by which high-risk ILUC feedstocks are measured. It also proposes to use 2014 data, as opposed to the current 2008 data.
Under the proposed calculations, both palm oil and soybean would surpass the threshold for high ILUC-risk feedstocks. Biomass Magazine
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May 05, 2026
Asean’s biodiesel push fuels palm oil rally, but will SGX-listed players gain?
Higher crude palm oil prices support upstream plantation earnings, but could be a double-edged sword for integrated operators: analysts
[SINGAPORE] A crude oil supply shortfall from the prolonged closure of the Strait of Hormuz has accelerated biodiesel mandates in South-east Asia, driving up crude palm oil (CPO) prices and lifting Singapore Exchange-listed plantation stocks.
Biodiesel – a substitute for petroleum-based diesel fuel produced by reacting vegetable oil or animal fat with alcohol – is becoming more cost-competitive.
Following the US-Iran war, CPO’s premium to gas oil has narrowed to around US$14 a tonne, from an average of around US$271 a tonne over the past year.
In Indonesia, the price of B50 – the blend of 50 per cent palm oil-based fuel with diesel – is now around 13,000 rupiah (S$0.96) a litre, compared to diesel at 17,800 rupiah a litre.
The country’s biodiesel mandate has scaled from B20 in 2016 to B40 in 2025. Although Indonesia’s B50 mandate was postponed in early 2026 due to capacity constraints, the government has accelerated its roll-out to Jul 1, subject to the completion of technical tests and infrastructure readiness.
Under this mandate, Indonesia’s diesel usage will be a 50-50 mix of palm oil-based fuel and diesel from 2028, making it the highest mandatory biodiesel blend rate globally.
Meanwhile, Malaysia announced in mid-April that it would gradually raise its biodiesel mandate from B10 to B15. This comes as the country aims to reduce reliance on imported fossil fuels and safeguard its domestic diesel supply.
Similarly, Thailand’s government has implemented a subsidy for B20, keeping it cheaper than unblended diesel.
Analysts expect CPO prices to be supported by a supply deficit amid the Middle East conflict and the prospect of El Nino, which could curb rainfall in South-east Asia. Business Times
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Indonesia’s Palm Oil Exports Tumble 35.08% YOY
Jakarta. Indonesia’s palm oil exports tumbled 35.08% year-on-year (yoy) in March, marking a slowdown despite the world’s largest supplier’s consistency in notching double-digit increases.
The Central Statistics Agency (BPS) reported that palm oil products remained a key contributor to Indonesia’s trade balance, enabling the country to register 71 consecutive months of surplus since May 2020. However, exports of crude palm oil (CPO) and its derivative products had severely weakened in March, a time when the ongoing Iran war had only just begun. The agency did not say why overseas shipments of the commodity found in nearly everything had slumped.
“Our exports of CPO and its derivatives amounted to $1.42 billion and weighed 1.31 million tons in March 2026. This indicates a 35.08% yoy drop from a value standpoint,” Ateng Hartono, a deputy at BPS, told a press conference in Jakarta on Monday.
The quarterly shipments still saw increases, but only in single digits. Value-wise, the figure reached $6.11 billion in January-March 2026, up by around 3.56% compared to the same period the previous year, when exports totaled $5.90 billion. The Q1 2026 export volume only hit 5.85 million tons, up by around 9.30%. BPS did not disclose who the biggest buyers of Indonesian palm oil were, but China and India have been the traditional go-to markets.
Indonesia started 2026 strong as the value of its palm oil exports skyrocketed 59.63% year-on-year (yoy) in the first month. The January-February exports also rose 26.40%, value-wise.
Ateng told the same conference that palm oil prices in international markets “had been rising since the beginning of the year”. It hit $1,149.33 per metric ton in April, quite a jump from $980.12 a metric ton seen in December 2025. At home, Indonesian palm oil producers group Gapki had previously complained about the 50% hike in transport and logistics costs for exports following the Iran war. The clashes -- which triggered the blockade of the Strait of Hormuz -- forced seaborne shipments to look for alternative routes, hence longer voyages.
Indonesia is gearing up to increase the mandatory palm oil blend in its diesel from the current 40% to 50%, starting in July. The move -- aimed at easing the war-fueled fiscal pressures -- will likely see Indonesia allocate more of its palm oil to meet the growing domestic demand, unless it increases the existing production. Jakarta Globe
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Africa seeks sustainable reclaim of palm oil industry
While the oil palm is native to Africa, the continent currently imports nearly half of its palm oil consumption, primarily from Southeast Asia. As African nations seek to bridge this production gap to save foreign currency and ensure food security, experts warn against the massive deforestation seen in major producers such as Indonesia and Malaysia. In Africa, 70% of production comes from smallholder farmers whose yields average just 6 tons per hectare, compared to over 20 tons on commercial plantations. Africa shows strong potential to increase palm oil production, with governments and multinational companies increasingly looking to invest in the industry. However, this creates pressure to expand farmland, with the Congo Basin and Cameroon’s ancient rainforests particularly at risk. Meanwhile, experts are advocating for an alternative approach, with sustainable certification programs demonstrating that yields can be improved on existing farmland. Already, one Ghanaian smallholder cooperative boosted output to 21 tons per hectare. Unfortunately, certification costs remain prohibitive without external financial support. African Business
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EU removes leather from flagship anti-deforestation law
The European Commission has excluded imports of leather from its anti-deforestation simplification review package, with compliance costs for businesses expected to be reduced by up to 75%.
The European Union Deforestation Regulation (EUDR) mandates that products derived from beef, cocoa, coffee, palm oil, natural rubber, soy, or wood must be “deforestation-free” and legally produced to be placed on the EU market.
The burden of compliance, or explanation, lies with importing businesses, and deforestation occurring after 2020 is taken into account.
The regulation has now been delayed twice. It was originally meant to enter into force on December 30, 2024, for large businesses, and to expand to micro and small businesses a year later.
However, after a revision late last year, the dates have been moved to December 30, 2026, for large businesses and June 30, 2027, for small firms. The proposals were also delayed, with green groups expecting a revised publication to be published on 1 May. The Commission finally published the revisions on Monday, 4 May.
Publications include a report to the European Parliament and the Council, an updated guidance document and Frequently Asked Questions, and a draft delegated act on the product scope of the EUDR.
The Commission claims that changes will reduce annual compliance costs for companies subject to EUDR obligations by about 75%, compared to the first iteration of the directive. Edie
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Global Witness calls out 'scandalous' exclusion of leather in EU deforestation regulation (EUDR) review
Responding to the European Commission's publication of the EUDR package on Monday 4th of May, Beate Beller, senior EU campaigner for Global Witness, said:
“Caving to industry pressure by excluding leather from EU deforestation rules is nothing short of scandalous.
“Cattle products, including leather and hides, are major drivers of deforestation in EU supply chains - leaving them out will have catastrophic consequences for people and planet.
“The EU must play its part in tackling the global deforestation crisis, by protecting climate-critical forests such as the Amazon and the Gran Chaco.
“The EUDR has the tools, and now we must finally use them. The EU must deliver the deforestation law, and deliver it without compromise.”
The EU’s deforestation law “EUDR” seeks to combat climate change and biodiversity loss by ensuring that products sold in the EU are not sourced from deforested land and are not linked to human rights abuses. Commodities in scope including coffee, timber, palm oil, cattle, soy, rubber and cocoa, as well as products derived from them.
Approved in 2023, the EUDR has been delayed twice and is now expected to come into application by the end of this year. Further amendments to the law were enacted in December 2025, when EU co-legislators agreed on a further 'simplification package', which the EU Commission presented today.
In April 2026, Global Witness revealed that Italian tanneries controlled by the French luxury group, LVMH, had been seeking leather exemptions to the EUDR while importing hides linked to significant Paraguayan forest loss.
A previous analysis by Global Witness found that the EUDR could help save over 8 million hectares of forest over the next decade, an area approximately the size of Austria. Global Witness
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Palm oil: lessons for Nigeria from Malaysia
Malaysia’s secret, Nigeria must learn from
Malaysia’s palm oil boom has been defined by deliberate strategy and sustained momentum, driven by a mix of market coordination, policy clarity, and aggressive global positioning.
Before Malaysia’s palm oil boom, the golden red fruit thrived in Nigerian soil, perfuming kitchens and shaping household diets with a taste few could resist.
Over time, however, that same crop journeyed across continents to Southeast Asia, where it found new life in Malaysian plantations. Today, Malaysia stands as a global powerhouse in palm oil exports, while Nigeria, once a dominant force, increasingly looks outward to meet its needs.
Nigeria currently produces between 1.2 million and 1.5 million tonnes of palm oil, far below its estimated domestic demand of about 2.4 million tonnes. The shortfall is routinely bridged through imports from Malaysia and other producing nations. This reversal raises a pressing question. How did a country that once introduced oil palm to Malaysia become dependent on imported supply?
Historically, Nigeria’s position was formidable, because In 1965, when global palm oil demand stood at roughly 1.5 million tonnes, Nigeria accounted for about 43 percent of the market. Today, with global demand at about 14 million tonnes, the country holds just seven percent.
“Due to neglect and lack of strategic investment in the sector by successive governments, Nigeria’s production capacity has dwindled, adding that the country ranks fifth globally in palm oil production, lagging behind Indonesia, Malaysia, Thailand, and Colombia,” noted Alphonsus Inyang, president of the National Palm Produce Association of Nigeria.
Meanwhile, Malaysia’s industry continues to expand. For instance, in 2025, the country recorded its highest ever crude palm oil production at 20.28 million tonnes, a 4.9 percent increase from the previous year, according to the Malaysia Palm Oil Council (MPOC).
The shift in trade patterns is equally striking as sub-Saharan Africa has now overtaken South Asia and the Asia Pacific to become the largest importing region for Malaysian palm oil, exposing a widening opportunity gap for Nigerian investors.
According to the MPOC 2025 annual report, imports into sub-Saharan Africa rose by 11.9 percent to 4.12 million tonnes. Nigeria itself posted a notable increase, with imports climbing by 15.1 percent to 285,825 tonnes, driven by strong domestic consumption.
Kenya led the surge, emerging as the world’s second largest individual importer of Malaysian palm oil in 2025, with volumes reaching about 1.21 million tonnes. BusinessNG
Asean’s biodiesel push fuels palm oil rally, but will SGX-listed players gain?
Higher crude palm oil prices support upstream plantation earnings, but could be a double-edged sword for integrated operators: analysts
[SINGAPORE] A crude oil supply shortfall from the prolonged closure of the Strait of Hormuz has accelerated biodiesel mandates in South-east Asia, driving up crude palm oil (CPO) prices and lifting Singapore Exchange-listed plantation stocks.
Biodiesel – a substitute for petroleum-based diesel fuel produced by reacting vegetable oil or animal fat with alcohol – is becoming more cost-competitive.
Following the US-Iran war, CPO’s premium to gas oil has narrowed to around US$14 a tonne, from an average of around US$271 a tonne over the past year.
In Indonesia, the price of B50 – the blend of 50 per cent palm oil-based fuel with diesel – is now around 13,000 rupiah (S$0.96) a litre, compared to diesel at 17,800 rupiah a litre.
The country’s biodiesel mandate has scaled from B20 in 2016 to B40 in 2025. Although Indonesia’s B50 mandate was postponed in early 2026 due to capacity constraints, the government has accelerated its roll-out to Jul 1, subject to the completion of technical tests and infrastructure readiness.
Under this mandate, Indonesia’s diesel usage will be a 50-50 mix of palm oil-based fuel and diesel from 2028, making it the highest mandatory biodiesel blend rate globally.
Meanwhile, Malaysia announced in mid-April that it would gradually raise its biodiesel mandate from B10 to B15. This comes as the country aims to reduce reliance on imported fossil fuels and safeguard its domestic diesel supply.
Similarly, Thailand’s government has implemented a subsidy for B20, keeping it cheaper than unblended diesel.
Analysts expect CPO prices to be supported by a supply deficit amid the Middle East conflict and the prospect of El Nino, which could curb rainfall in South-east Asia. Business Times
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Indonesia’s Palm Oil Exports Tumble 35.08% YOY
Jakarta. Indonesia’s palm oil exports tumbled 35.08% year-on-year (yoy) in March, marking a slowdown despite the world’s largest supplier’s consistency in notching double-digit increases.
The Central Statistics Agency (BPS) reported that palm oil products remained a key contributor to Indonesia’s trade balance, enabling the country to register 71 consecutive months of surplus since May 2020. However, exports of crude palm oil (CPO) and its derivative products had severely weakened in March, a time when the ongoing Iran war had only just begun. The agency did not say why overseas shipments of the commodity found in nearly everything had slumped.
“Our exports of CPO and its derivatives amounted to $1.42 billion and weighed 1.31 million tons in March 2026. This indicates a 35.08% yoy drop from a value standpoint,” Ateng Hartono, a deputy at BPS, told a press conference in Jakarta on Monday.
The quarterly shipments still saw increases, but only in single digits. Value-wise, the figure reached $6.11 billion in January-March 2026, up by around 3.56% compared to the same period the previous year, when exports totaled $5.90 billion. The Q1 2026 export volume only hit 5.85 million tons, up by around 9.30%. BPS did not disclose who the biggest buyers of Indonesian palm oil were, but China and India have been the traditional go-to markets.
Indonesia started 2026 strong as the value of its palm oil exports skyrocketed 59.63% year-on-year (yoy) in the first month. The January-February exports also rose 26.40%, value-wise.
Ateng told the same conference that palm oil prices in international markets “had been rising since the beginning of the year”. It hit $1,149.33 per metric ton in April, quite a jump from $980.12 a metric ton seen in December 2025. At home, Indonesian palm oil producers group Gapki had previously complained about the 50% hike in transport and logistics costs for exports following the Iran war. The clashes -- which triggered the blockade of the Strait of Hormuz -- forced seaborne shipments to look for alternative routes, hence longer voyages.
Indonesia is gearing up to increase the mandatory palm oil blend in its diesel from the current 40% to 50%, starting in July. The move -- aimed at easing the war-fueled fiscal pressures -- will likely see Indonesia allocate more of its palm oil to meet the growing domestic demand, unless it increases the existing production. Jakarta Globe
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Africa seeks sustainable reclaim of palm oil industry
While the oil palm is native to Africa, the continent currently imports nearly half of its palm oil consumption, primarily from Southeast Asia. As African nations seek to bridge this production gap to save foreign currency and ensure food security, experts warn against the massive deforestation seen in major producers such as Indonesia and Malaysia. In Africa, 70% of production comes from smallholder farmers whose yields average just 6 tons per hectare, compared to over 20 tons on commercial plantations. Africa shows strong potential to increase palm oil production, with governments and multinational companies increasingly looking to invest in the industry. However, this creates pressure to expand farmland, with the Congo Basin and Cameroon’s ancient rainforests particularly at risk. Meanwhile, experts are advocating for an alternative approach, with sustainable certification programs demonstrating that yields can be improved on existing farmland. Already, one Ghanaian smallholder cooperative boosted output to 21 tons per hectare. Unfortunately, certification costs remain prohibitive without external financial support. African Business
----------
EU removes leather from flagship anti-deforestation law
The European Commission has excluded imports of leather from its anti-deforestation simplification review package, with compliance costs for businesses expected to be reduced by up to 75%.
The European Union Deforestation Regulation (EUDR) mandates that products derived from beef, cocoa, coffee, palm oil, natural rubber, soy, or wood must be “deforestation-free” and legally produced to be placed on the EU market.
The burden of compliance, or explanation, lies with importing businesses, and deforestation occurring after 2020 is taken into account.
The regulation has now been delayed twice. It was originally meant to enter into force on December 30, 2024, for large businesses, and to expand to micro and small businesses a year later.
However, after a revision late last year, the dates have been moved to December 30, 2026, for large businesses and June 30, 2027, for small firms. The proposals were also delayed, with green groups expecting a revised publication to be published on 1 May. The Commission finally published the revisions on Monday, 4 May.
Publications include a report to the European Parliament and the Council, an updated guidance document and Frequently Asked Questions, and a draft delegated act on the product scope of the EUDR.
The Commission claims that changes will reduce annual compliance costs for companies subject to EUDR obligations by about 75%, compared to the first iteration of the directive. Edie
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Global Witness calls out 'scandalous' exclusion of leather in EU deforestation regulation (EUDR) review
Responding to the European Commission's publication of the EUDR package on Monday 4th of May, Beate Beller, senior EU campaigner for Global Witness, said:
“Caving to industry pressure by excluding leather from EU deforestation rules is nothing short of scandalous.
“Cattle products, including leather and hides, are major drivers of deforestation in EU supply chains - leaving them out will have catastrophic consequences for people and planet.
“The EU must play its part in tackling the global deforestation crisis, by protecting climate-critical forests such as the Amazon and the Gran Chaco.
“The EUDR has the tools, and now we must finally use them. The EU must deliver the deforestation law, and deliver it without compromise.”
The EU’s deforestation law “EUDR” seeks to combat climate change and biodiversity loss by ensuring that products sold in the EU are not sourced from deforested land and are not linked to human rights abuses. Commodities in scope including coffee, timber, palm oil, cattle, soy, rubber and cocoa, as well as products derived from them.
Approved in 2023, the EUDR has been delayed twice and is now expected to come into application by the end of this year. Further amendments to the law were enacted in December 2025, when EU co-legislators agreed on a further 'simplification package', which the EU Commission presented today.
In April 2026, Global Witness revealed that Italian tanneries controlled by the French luxury group, LVMH, had been seeking leather exemptions to the EUDR while importing hides linked to significant Paraguayan forest loss.
A previous analysis by Global Witness found that the EUDR could help save over 8 million hectares of forest over the next decade, an area approximately the size of Austria. Global Witness
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Palm oil: lessons for Nigeria from Malaysia
Malaysia’s secret, Nigeria must learn from
Malaysia’s palm oil boom has been defined by deliberate strategy and sustained momentum, driven by a mix of market coordination, policy clarity, and aggressive global positioning.
Before Malaysia’s palm oil boom, the golden red fruit thrived in Nigerian soil, perfuming kitchens and shaping household diets with a taste few could resist.
Over time, however, that same crop journeyed across continents to Southeast Asia, where it found new life in Malaysian plantations. Today, Malaysia stands as a global powerhouse in palm oil exports, while Nigeria, once a dominant force, increasingly looks outward to meet its needs.
Nigeria currently produces between 1.2 million and 1.5 million tonnes of palm oil, far below its estimated domestic demand of about 2.4 million tonnes. The shortfall is routinely bridged through imports from Malaysia and other producing nations. This reversal raises a pressing question. How did a country that once introduced oil palm to Malaysia become dependent on imported supply?
Historically, Nigeria’s position was formidable, because In 1965, when global palm oil demand stood at roughly 1.5 million tonnes, Nigeria accounted for about 43 percent of the market. Today, with global demand at about 14 million tonnes, the country holds just seven percent.
“Due to neglect and lack of strategic investment in the sector by successive governments, Nigeria’s production capacity has dwindled, adding that the country ranks fifth globally in palm oil production, lagging behind Indonesia, Malaysia, Thailand, and Colombia,” noted Alphonsus Inyang, president of the National Palm Produce Association of Nigeria.
Meanwhile, Malaysia’s industry continues to expand. For instance, in 2025, the country recorded its highest ever crude palm oil production at 20.28 million tonnes, a 4.9 percent increase from the previous year, according to the Malaysia Palm Oil Council (MPOC).
The shift in trade patterns is equally striking as sub-Saharan Africa has now overtaken South Asia and the Asia Pacific to become the largest importing region for Malaysian palm oil, exposing a widening opportunity gap for Nigerian investors.
According to the MPOC 2025 annual report, imports into sub-Saharan Africa rose by 11.9 percent to 4.12 million tonnes. Nigeria itself posted a notable increase, with imports climbing by 15.1 percent to 285,825 tonnes, driven by strong domestic consumption.
Kenya led the surge, emerging as the world’s second largest individual importer of Malaysian palm oil in 2025, with volumes reaching about 1.21 million tonnes. BusinessNG
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May 02, 2026
Indonesia's ITS Develops Scalable, High-Efficiency Palm-Based Biogasoline Production Technology
SURABAYA, INDONESIA, May 2, 2026 - (ACN Newswire) - Institut Teknologi Sepuluh Nopember (ITS) has developed an innovative technology known as Benwit (Palm Gasoline), enabling the conversion of crude palm oil (CPO) into high-quality biogasoline, and presenting a promising alternative for reducing Indonesia’s substantial dependence on imported petroleum and foreign extraction technologies.
Geopolitical tensions have continued to disrupt the global oil market and threaten energy supply security across Southeast Asia, thus emerging economies such as Indonesia are placing greater emphasis on energy sovereignty to safeguard national interests against the volatility of fossil fuel supply chains.
The research, funded by the Indonesian Oil Palm Plantation Fund Management Agency (BPDPKS), applies an advanced catalytic cracking method developed by ITS expert Dr. Eng. Hosta Ardhyananta, S.T., M.Sc., and his team. This method is designed to decompose large triglyceride molecules in crude palm oil (CPO) into lighter hydrocarbon fractions that are suitable for use in combustion engines.
Hosta's team successfully optimized the reaction by introducing a bimetallic catalytic composed of Nickel Oxide (Nio) and Copper Oxide (CuO). This catalytic synergy enabled a substantial reduction in operating temperature, from 380°C to 320°C, while simultaneously increasing the biogasoline yield from 60% to an impressive 83%.
The resulting fuel consists of short-chain hydrocarbons (C5–C11), closely resembling the chemical composition of commercial gasoline. In addition to the primary fuel product, the process reflects a zero-emission approach, in which gaseous byproducts are recycled as a heat source for the reactors, while liquid residues are repurposed as fuel for industrial or household stoves.
Hosta noted that the innovation has been applied with agricultural machinery, but testing has been underway since April with conventional internal combustion engines through a blending method with fossil fuels and will continue to enable Benwit as a primary fuel for conventional vehicles, in line with the Indonesian government's plan to implement B50 biodiesel in July.
This innovation aligns with several of the United Nations Sustainable Development Goals (SDGs), particularly Goal 7 on affordable and clean energy, and Goal 12 on responsible consumption and production. A comprehensive Life Cycle Assessment (LCA) conducted by the research team indicates that the production process generates a minimal carbon footprint in comparison with conventional fossil fuels.
The development of Benwit has also received full support from the Indonesian Minister of Agriculture, Amran Sulaiman. In the near future, collaboration with PT Perkebunan Nusantara (PTPN) PalmCo IV is expected to commence following the signing of a Memorandum of Understanding (MoU) with ITS.
Prof. Dr. (HC) Ir. Bambang Pramujati, S.T., M.Sc.Eng., Ph.D., and Rector of ITS, underscored the timeliness of Benwit, noting that the current global situation offers a strategic opportunity for the government to accelerate the transition toward alternative energy sources, while the use of domestic palm oil reserves could help mitigate the effects of external fuel crises.
Benwit bio-based fuel products, for agriculturl machinery and for convetional vehicles, represent a potentially significant policy instrument for advancing the transition to renewable energy, while working to reinforce national energy security.
About ITS
Established in 1960, Institut Teknologi Sepuluh Nopember (ITS) is one of Indonesia’s leading universities, with a strong emphasis on science, engineering, and innovation. Based in Surabaya, ITS is committed to advancing global sustainable development through cutting-edge research, technological innovation, and collaboration with industry. Visit www.its.ac.id/news
Media Contact:
ITS Public Relations (HUMAS)
Email: [email protected]
Instagram: its_campus
Facebook: Institut Teknologi Sepuluh Nopember
Twitter, Line: @its_campus
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Indonesia’s B50 Mandate: A $10 Billion Shield Against Fuel Imports or a Fiscal Time Bomb?
The Indonesian government plans to implement a B50 biodiesel mandate by July 2026, targeting a $10.8 billion reduction in foreign exchange spending.
●The palm oil industry is expected to add $1.38 billion in value-added revenue and create nearly 100,000 new jobs through the downstream initiative.
●The Indonesian Palm Oil Association (GAPKI) supports the move but warns that stagnant production must be addressed via accelerated replanting programs.
●Financial regulators at the BPDP warn that the program risks a deficit unless global oil prices stay above $100 per barrel or export levies are doubled.
JAKARTA, Investortrust.id — Indonesia is doubling down on its "energy sovereignty" play, positioning the upcoming B50 biodiesel mandate as a massive $10.8 billion buffer against global volatility.
The shift to a 50% palm-oil-based fuel blend represents a radical decoupling from global oil markets. For investors, this solidifies Indonesia’s status as a "biofuel superpower," but it simultaneously hitches the national budget to the volatile price gap between crude palm oil (CPO) and Brent crude.
The Macro Play: Devisa and Jobs
Ferry Irawan, Deputy for Coordination of SOE Business Development at the Coordinating Ministry for Economic Affairs, revealed that the B50 program is designed to protect the state budget (APBN). The government projects foreign exchange savings will climb to Rp 172.35 trillion ($10.84 billion) in 2026, up from the current 2025 forecast of Rp 133.3 trillion.
"The implementation of B50 does not only impact the energy sector but provides a direct benefit to the state budget," Irawan stated during a national seminar in Jakarta on Thursday. He noted that the downstream push would boost the palm oil industry's value-add to Rp 21.94 trillion ($1.38 billion) and swell the workforce to 1.97 million people.
The Fiscal Risk: The $100 Barrel Threshold
Despite the optimism, the financial backbone of the project faces a potential "crush spread" crisis. Mohammad Alfansyah, Director at the Palm Oil Fund Management Agency (BPDP), warned that the cost of subsidizing the gap between biodiesel and fossil diesel could bleed the agency dry if oil prices soften.
Alfansyah explained that if Brent crude sits at $85 per barrel, the agency must shell out Rp 41.3 trillion ($2.6 billion) in incentives. That burden only drops to a manageable level if oil surges past $100. "In normal conditions, B50 implementation still has the potential to cause a deficit because our primary funding still relies on export levies," Alfansyah cautioned.
Production Stagnation and "Flexible Blending"
The Indonesian Palm Oil Association (GAPKI), the nation's powerful palm oil association, is sounding the alarm on supply. GAPKI Chairman Eddy Martono highlighted that national CPO production has plateaued at around 50 million tons.
To mitigate supply shocks and fiscal strain, GAPKI is lobbying for a "flexible blending" policy. This would allow the government to dial the 50% mandate up or down based on market prices and feedstock availability. "If the Smallholder Oil Palm Replanting (PSR) program runs well, we could hit 60 million tons, which makes B50 very safe," Martono added.
Infrastructure Bottleneck: Pertamina’s Storage Race
The technical reality of B50 is forcing a massive logistical overhaul at PT Pertamina Patra Niaga, the trading and distribution arm of the state energy giant. Sigit Setiawan, VP of Business Development & Subsidiary, revealed that the company is currently mapping its entire infrastructure network to accommodate the higher volume of Fatty Acid Methyl Ester (FAME) required for the 50% blend. This shift necessitates significantly larger storage tanks across the archipelago.
However, Pertamina faces a looming real estate crisis at its fuel terminals. Setiawan noted that while capacity must expand, many key sites—including the critical Plumpang terminal in Jakarta and facilities in Baubau, Sulawesi—are land-locked by surrounding developments that cannot be cleared or purchased.
Furthermore, the "last-mile" delivery of B50 remains a geographic challenge. Currently, only 35 major terminals are equipped to receive direct FAME shipments for on-site blending. Remote regions still rely on receiving pre-blended biodiesel, a logistical dependency that could complicate the nationwide rollout of the B50 mandate.
The success of the B50 rollout will ultimately depend on whether the government can bridge the gap between its high-level fiscal goals and the gritty, physical constraints of Indonesia’s aging fuel infrastructure. Investor Trust
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Biofuel use pushes up food prices: Is demand here to stay?
01-May-2026 by Augustus Bambridge-Sutton
As the price of crude oil is buoyed by the Iran war, the world’s energy markets are scrambling for alternatives
https://www.foodnavigator.com/Article/2026/05/01/food-prices-impacted-by-biofuels/
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Palm oil could strengthen Sri Lanka’s economy
In Colombo, a local industry body said that expanding palm oil production could significantly reduce the country’s import dependence and ease pressure on foreign exchange reserves, following a sector-focused discussion involving industry representatives and academics.
According to participants, Sri Lanka imported 38,210 tonnes of palm oil in 2025, compared with 33,696 tonnes of coconut oil, with total spending reaching about 140 billion rupees. By comparison, palm oil imports stood at 34,708 tonnes in 2024. Experts noted that developing domestic production could substantially cut these costs.
Professor Asoka Nugawela said current restrictions on oil palm cultivation are limiting the use of a high-yield crop. He added that average yields can reach around 4 tonnes of oil per hectare, and at a global price of roughly $1,100 per tonne, this represents a significant economic opportunity.
Participants also said that around 8,000 hectares of suitable land could be allocated for cultivation, supporting agricultural diversification, rural employment and potential export growth. At the same time, they stressed the need for clear regulations and oversight to minimise environmental risks.
The Palm Oil Industry Association said future policy decisions should be based on scientific evidence, economic rationale and sustainability principles, in order to integrate the sector into the country’s broader economic recovery strategy.
It is worth noting that the ban on oil palm cultivation introduced in 2021 has already cost Sri Lanka more than $175 million in edible oil imports and around $35 million annually in lost foreign exchange. Industry groups say the restrictions have left thousands of hectares idle, reduced investment returns and weakened employment, while prior to the ban the sector supported thousands of jobs and covered a significant share of domestic demand. UKR Agroconsult
Indonesia's ITS Develops Scalable, High-Efficiency Palm-Based Biogasoline Production Technology
SURABAYA, INDONESIA, May 2, 2026 - (ACN Newswire) - Institut Teknologi Sepuluh Nopember (ITS) has developed an innovative technology known as Benwit (Palm Gasoline), enabling the conversion of crude palm oil (CPO) into high-quality biogasoline, and presenting a promising alternative for reducing Indonesia’s substantial dependence on imported petroleum and foreign extraction technologies.
Geopolitical tensions have continued to disrupt the global oil market and threaten energy supply security across Southeast Asia, thus emerging economies such as Indonesia are placing greater emphasis on energy sovereignty to safeguard national interests against the volatility of fossil fuel supply chains.
The research, funded by the Indonesian Oil Palm Plantation Fund Management Agency (BPDPKS), applies an advanced catalytic cracking method developed by ITS expert Dr. Eng. Hosta Ardhyananta, S.T., M.Sc., and his team. This method is designed to decompose large triglyceride molecules in crude palm oil (CPO) into lighter hydrocarbon fractions that are suitable for use in combustion engines.
Hosta's team successfully optimized the reaction by introducing a bimetallic catalytic composed of Nickel Oxide (Nio) and Copper Oxide (CuO). This catalytic synergy enabled a substantial reduction in operating temperature, from 380°C to 320°C, while simultaneously increasing the biogasoline yield from 60% to an impressive 83%.
The resulting fuel consists of short-chain hydrocarbons (C5–C11), closely resembling the chemical composition of commercial gasoline. In addition to the primary fuel product, the process reflects a zero-emission approach, in which gaseous byproducts are recycled as a heat source for the reactors, while liquid residues are repurposed as fuel for industrial or household stoves.
Hosta noted that the innovation has been applied with agricultural machinery, but testing has been underway since April with conventional internal combustion engines through a blending method with fossil fuels and will continue to enable Benwit as a primary fuel for conventional vehicles, in line with the Indonesian government's plan to implement B50 biodiesel in July.
This innovation aligns with several of the United Nations Sustainable Development Goals (SDGs), particularly Goal 7 on affordable and clean energy, and Goal 12 on responsible consumption and production. A comprehensive Life Cycle Assessment (LCA) conducted by the research team indicates that the production process generates a minimal carbon footprint in comparison with conventional fossil fuels.
The development of Benwit has also received full support from the Indonesian Minister of Agriculture, Amran Sulaiman. In the near future, collaboration with PT Perkebunan Nusantara (PTPN) PalmCo IV is expected to commence following the signing of a Memorandum of Understanding (MoU) with ITS.
Prof. Dr. (HC) Ir. Bambang Pramujati, S.T., M.Sc.Eng., Ph.D., and Rector of ITS, underscored the timeliness of Benwit, noting that the current global situation offers a strategic opportunity for the government to accelerate the transition toward alternative energy sources, while the use of domestic palm oil reserves could help mitigate the effects of external fuel crises.
Benwit bio-based fuel products, for agriculturl machinery and for convetional vehicles, represent a potentially significant policy instrument for advancing the transition to renewable energy, while working to reinforce national energy security.
About ITS
Established in 1960, Institut Teknologi Sepuluh Nopember (ITS) is one of Indonesia’s leading universities, with a strong emphasis on science, engineering, and innovation. Based in Surabaya, ITS is committed to advancing global sustainable development through cutting-edge research, technological innovation, and collaboration with industry. Visit www.its.ac.id/news
Media Contact:
ITS Public Relations (HUMAS)
Email: [email protected]
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Facebook: Institut Teknologi Sepuluh Nopember
Twitter, Line: @its_campus
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Indonesia’s B50 Mandate: A $10 Billion Shield Against Fuel Imports or a Fiscal Time Bomb?
The Indonesian government plans to implement a B50 biodiesel mandate by July 2026, targeting a $10.8 billion reduction in foreign exchange spending.
●The palm oil industry is expected to add $1.38 billion in value-added revenue and create nearly 100,000 new jobs through the downstream initiative.
●The Indonesian Palm Oil Association (GAPKI) supports the move but warns that stagnant production must be addressed via accelerated replanting programs.
●Financial regulators at the BPDP warn that the program risks a deficit unless global oil prices stay above $100 per barrel or export levies are doubled.
JAKARTA, Investortrust.id — Indonesia is doubling down on its "energy sovereignty" play, positioning the upcoming B50 biodiesel mandate as a massive $10.8 billion buffer against global volatility.
The shift to a 50% palm-oil-based fuel blend represents a radical decoupling from global oil markets. For investors, this solidifies Indonesia’s status as a "biofuel superpower," but it simultaneously hitches the national budget to the volatile price gap between crude palm oil (CPO) and Brent crude.
The Macro Play: Devisa and Jobs
Ferry Irawan, Deputy for Coordination of SOE Business Development at the Coordinating Ministry for Economic Affairs, revealed that the B50 program is designed to protect the state budget (APBN). The government projects foreign exchange savings will climb to Rp 172.35 trillion ($10.84 billion) in 2026, up from the current 2025 forecast of Rp 133.3 trillion.
"The implementation of B50 does not only impact the energy sector but provides a direct benefit to the state budget," Irawan stated during a national seminar in Jakarta on Thursday. He noted that the downstream push would boost the palm oil industry's value-add to Rp 21.94 trillion ($1.38 billion) and swell the workforce to 1.97 million people.
The Fiscal Risk: The $100 Barrel Threshold
Despite the optimism, the financial backbone of the project faces a potential "crush spread" crisis. Mohammad Alfansyah, Director at the Palm Oil Fund Management Agency (BPDP), warned that the cost of subsidizing the gap between biodiesel and fossil diesel could bleed the agency dry if oil prices soften.
Alfansyah explained that if Brent crude sits at $85 per barrel, the agency must shell out Rp 41.3 trillion ($2.6 billion) in incentives. That burden only drops to a manageable level if oil surges past $100. "In normal conditions, B50 implementation still has the potential to cause a deficit because our primary funding still relies on export levies," Alfansyah cautioned.
Production Stagnation and "Flexible Blending"
The Indonesian Palm Oil Association (GAPKI), the nation's powerful palm oil association, is sounding the alarm on supply. GAPKI Chairman Eddy Martono highlighted that national CPO production has plateaued at around 50 million tons.
To mitigate supply shocks and fiscal strain, GAPKI is lobbying for a "flexible blending" policy. This would allow the government to dial the 50% mandate up or down based on market prices and feedstock availability. "If the Smallholder Oil Palm Replanting (PSR) program runs well, we could hit 60 million tons, which makes B50 very safe," Martono added.
Infrastructure Bottleneck: Pertamina’s Storage Race
The technical reality of B50 is forcing a massive logistical overhaul at PT Pertamina Patra Niaga, the trading and distribution arm of the state energy giant. Sigit Setiawan, VP of Business Development & Subsidiary, revealed that the company is currently mapping its entire infrastructure network to accommodate the higher volume of Fatty Acid Methyl Ester (FAME) required for the 50% blend. This shift necessitates significantly larger storage tanks across the archipelago.
However, Pertamina faces a looming real estate crisis at its fuel terminals. Setiawan noted that while capacity must expand, many key sites—including the critical Plumpang terminal in Jakarta and facilities in Baubau, Sulawesi—are land-locked by surrounding developments that cannot be cleared or purchased.
Furthermore, the "last-mile" delivery of B50 remains a geographic challenge. Currently, only 35 major terminals are equipped to receive direct FAME shipments for on-site blending. Remote regions still rely on receiving pre-blended biodiesel, a logistical dependency that could complicate the nationwide rollout of the B50 mandate.
The success of the B50 rollout will ultimately depend on whether the government can bridge the gap between its high-level fiscal goals and the gritty, physical constraints of Indonesia’s aging fuel infrastructure. Investor Trust
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Biofuel use pushes up food prices: Is demand here to stay?
01-May-2026 by Augustus Bambridge-Sutton
As the price of crude oil is buoyed by the Iran war, the world’s energy markets are scrambling for alternatives
https://www.foodnavigator.com/Article/2026/05/01/food-prices-impacted-by-biofuels/
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Palm oil could strengthen Sri Lanka’s economy
In Colombo, a local industry body said that expanding palm oil production could significantly reduce the country’s import dependence and ease pressure on foreign exchange reserves, following a sector-focused discussion involving industry representatives and academics.
According to participants, Sri Lanka imported 38,210 tonnes of palm oil in 2025, compared with 33,696 tonnes of coconut oil, with total spending reaching about 140 billion rupees. By comparison, palm oil imports stood at 34,708 tonnes in 2024. Experts noted that developing domestic production could substantially cut these costs.
Professor Asoka Nugawela said current restrictions on oil palm cultivation are limiting the use of a high-yield crop. He added that average yields can reach around 4 tonnes of oil per hectare, and at a global price of roughly $1,100 per tonne, this represents a significant economic opportunity.
Participants also said that around 8,000 hectares of suitable land could be allocated for cultivation, supporting agricultural diversification, rural employment and potential export growth. At the same time, they stressed the need for clear regulations and oversight to minimise environmental risks.
The Palm Oil Industry Association said future policy decisions should be based on scientific evidence, economic rationale and sustainability principles, in order to integrate the sector into the country’s broader economic recovery strategy.
It is worth noting that the ban on oil palm cultivation introduced in 2021 has already cost Sri Lanka more than $175 million in edible oil imports and around $35 million annually in lost foreign exchange. Industry groups say the restrictions have left thousands of hectares idle, reduced investment returns and weakened employment, while prior to the ban the sector supported thousands of jobs and covered a significant share of domestic demand. UKR Agroconsult
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May 01, 2026
Nigeria caught in global palm oil squeeze as prices hit new highs
Nigeria is facing higher costs for importing palm oil as global prices continue to rise due to supply problems in Indonesia, the world’s largest producer.
Crude Palm Oil (CPO) prices on the Bursa Malaysia Derivatives Exchange are currently trading between $1,135 and $1,160 per metric ton.
This increase is affecting countries like Nigeria, which depends on imports to meet its supply gap of over 500,000 metric tons each year.
Indonesia plans to increase its palm oil biodiesel blend to 50% (B50) in 2026. The country is also maintaining higher export taxes to support its domestic fuel needs.
These policies reduce the amount of palm oil available for export, pushing global prices higher and increasing costs for importers like Nigeria.
Palm oil prices are also linked to crude oil prices because palm oil is used in biodiesel production. With crude oil around $120 per barrel, palm oil prices are expected to remain high.
Weather conditions are also affecting supply.
A strong dry season and El Niño effects are expected to reduce Indonesia’s output by up to one million tons in 2026.
At the same time, countries like Malaysia and Indonesia are increasing local biodiesel usage, which further limits exports.
Nigeria consumes over 2.5 million metric tons of palm oil yearly but produces only about 1.4 million metric tons.
This shortfall forces the country to import large quantities, costing about $500 million to $600 million annually.
The gap also contributes to food inflation, as palm oil is widely used in households.
Nigeria used to be a major global producer of palm oil in the 1960s, supplying over 40% of the world market. However, production has declined significantly over the years. PM News Nigeria
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Nigeria, Malaysia hit $1.2bn trade boom as new customs deal takes shape
Trade between Nigeria and Malaysia has reached approximately $1.21bn over the past five years, driven largely by a sharp rise in imports from Southeast Asia, according to the Nigeria Customs Service (NCS).
The National Public Relations Officer of the NCS, Abdullahi Maiwada, said the growth reflects both countries’ deepening commercial ties and ongoing efforts to improve customs cooperation. He noted that the development aligns with broader initiatives to strengthen international trade facilitation and regulatory coordination.
Maiwada explained that the latest engagement between the two countries followed a visit by the Comptroller-General of Customs, Adewale Adeniyi, to the Royal Malaysian Customs Department (RMCD) headquarters during his participation in DSA Malaysia 2026. He said the discussions took place against the backdrop of expanding bilateral trade flows.
Adeniyi was received by the Director-General of the RMCD, Dato’ Haji Amran bin Haji Ahmad, with both sides holding talks centred on customs modernisation, institutional collaboration, and coordinated border management systems designed to improve efficiency and compliance.
According to Maiwada, both administrations acknowledged that despite long-standing trade relations, there is currently no formal legal framework guiding customs cooperation between Nigeria and Malaysia. He said this gap has become more apparent as trade volumes continue to rise.
To address this, both sides agreed to begin processes toward establishing a Mutual Recognition Agreement under the World Customs Organisation framework, to be pursued through diplomatic channels. Maiwada said the arrangement is expected to strengthen trust and streamline trade facilitation measures.
Adeniyi stressed that the scale of trade between the two countries now requires a more structured customs partnership. He highlighted Malaysia’s position as a key trading partner for Nigeria, with major imports including crude palm oil, refined palm olein, jet fuel, food products, machinery, and industrial inputs. Business Insider Africa
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EU to remove leather from anti-deforestation law after industry pressure, officials say
BRUSSELS, April 30 (Reuters) - The European Commission is set to exclude imports of leather from its anti-deforestation law, EU officials told Reuters, after a campaign by industry groups which argued that production does not incentivise the cattle farming that fuels forest destruction.
The exemption will remove leather, hides and skins from the world-first law, which from December will require companies selling goods including soy, coffee, beef and palm oil into the EU to prove their products did not cause deforestation.
A Commission spokesperson declined to comment on the plan.
Those breaking the rules risk hefty fines and a potential ban on accessing the EU market.
Environmental groups have urged the EU not to exempt leather, arguing that this would weaken the law's ability to curb deforestation.
Leather industry groups have argued that as a by-product of the meat industry, with a relatively low value, leather's production does not incentivise the cattle farming that drives deforestation. Beef imports are covered by the EU law.
Including leather "will have a devastating impact on the EU tanning industry," Europe's tanning and dressing industry body COTANCE said in a public submission to the EU last year, adding that tanneries would not be able to force cattle farming firms further up the supply chain to comply with the EU law.
Industry groups have stepped up their calls in recent weeks, making their case to EU lawmakers and representatives from the European Commission at an event at the European Parliament on April 8.
Europe's tanning industry is the world's largest supplier of leather, according to the EU.
European tanneries import around 40% of the raw materials - such as hides - they use from countries including Brazil and the U.S., industry data shows.
The Commission's analysis, when it first designed the law in 2021, had said leather is "a relevant factor of deforestation according to literature and feedback from stakeholders".
Brussels had already delayed the launch of the policy by two years, after opposition from Brazil, Indonesia and the United States, which say complying would be costly and hurt their exports to Europe. Reuters
Nigeria caught in global palm oil squeeze as prices hit new highs
Nigeria is facing higher costs for importing palm oil as global prices continue to rise due to supply problems in Indonesia, the world’s largest producer.
Crude Palm Oil (CPO) prices on the Bursa Malaysia Derivatives Exchange are currently trading between $1,135 and $1,160 per metric ton.
This increase is affecting countries like Nigeria, which depends on imports to meet its supply gap of over 500,000 metric tons each year.
Indonesia plans to increase its palm oil biodiesel blend to 50% (B50) in 2026. The country is also maintaining higher export taxes to support its domestic fuel needs.
These policies reduce the amount of palm oil available for export, pushing global prices higher and increasing costs for importers like Nigeria.
Palm oil prices are also linked to crude oil prices because palm oil is used in biodiesel production. With crude oil around $120 per barrel, palm oil prices are expected to remain high.
Weather conditions are also affecting supply.
A strong dry season and El Niño effects are expected to reduce Indonesia’s output by up to one million tons in 2026.
At the same time, countries like Malaysia and Indonesia are increasing local biodiesel usage, which further limits exports.
Nigeria consumes over 2.5 million metric tons of palm oil yearly but produces only about 1.4 million metric tons.
This shortfall forces the country to import large quantities, costing about $500 million to $600 million annually.
The gap also contributes to food inflation, as palm oil is widely used in households.
Nigeria used to be a major global producer of palm oil in the 1960s, supplying over 40% of the world market. However, production has declined significantly over the years. PM News Nigeria
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Nigeria, Malaysia hit $1.2bn trade boom as new customs deal takes shape
Trade between Nigeria and Malaysia has reached approximately $1.21bn over the past five years, driven largely by a sharp rise in imports from Southeast Asia, according to the Nigeria Customs Service (NCS).
- Nigeria and Malaysia recorded approximately $1.21bn in bilateral trade over five years, according to the Nigeria Customs Service.
- Imports from Malaysia rose significantly, reflecting stronger commercial ties between the two countries.
- Both customs authorities have now moved to strengthen cooperation through a proposed Mutual Recognition Agreement.
- The initiative aims to improve trade facilitation, border security and regulatory efficiency amid growing exchange volumes.
The National Public Relations Officer of the NCS, Abdullahi Maiwada, said the growth reflects both countries’ deepening commercial ties and ongoing efforts to improve customs cooperation. He noted that the development aligns with broader initiatives to strengthen international trade facilitation and regulatory coordination.
Maiwada explained that the latest engagement between the two countries followed a visit by the Comptroller-General of Customs, Adewale Adeniyi, to the Royal Malaysian Customs Department (RMCD) headquarters during his participation in DSA Malaysia 2026. He said the discussions took place against the backdrop of expanding bilateral trade flows.
Adeniyi was received by the Director-General of the RMCD, Dato’ Haji Amran bin Haji Ahmad, with both sides holding talks centred on customs modernisation, institutional collaboration, and coordinated border management systems designed to improve efficiency and compliance.
According to Maiwada, both administrations acknowledged that despite long-standing trade relations, there is currently no formal legal framework guiding customs cooperation between Nigeria and Malaysia. He said this gap has become more apparent as trade volumes continue to rise.
To address this, both sides agreed to begin processes toward establishing a Mutual Recognition Agreement under the World Customs Organisation framework, to be pursued through diplomatic channels. Maiwada said the arrangement is expected to strengthen trust and streamline trade facilitation measures.
Adeniyi stressed that the scale of trade between the two countries now requires a more structured customs partnership. He highlighted Malaysia’s position as a key trading partner for Nigeria, with major imports including crude palm oil, refined palm olein, jet fuel, food products, machinery, and industrial inputs. Business Insider Africa
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EU to remove leather from anti-deforestation law after industry pressure, officials say
BRUSSELS, April 30 (Reuters) - The European Commission is set to exclude imports of leather from its anti-deforestation law, EU officials told Reuters, after a campaign by industry groups which argued that production does not incentivise the cattle farming that fuels forest destruction.
The exemption will remove leather, hides and skins from the world-first law, which from December will require companies selling goods including soy, coffee, beef and palm oil into the EU to prove their products did not cause deforestation.
A Commission spokesperson declined to comment on the plan.
Those breaking the rules risk hefty fines and a potential ban on accessing the EU market.
Environmental groups have urged the EU not to exempt leather, arguing that this would weaken the law's ability to curb deforestation.
Leather industry groups have argued that as a by-product of the meat industry, with a relatively low value, leather's production does not incentivise the cattle farming that drives deforestation. Beef imports are covered by the EU law.
Including leather "will have a devastating impact on the EU tanning industry," Europe's tanning and dressing industry body COTANCE said in a public submission to the EU last year, adding that tanneries would not be able to force cattle farming firms further up the supply chain to comply with the EU law.
Industry groups have stepped up their calls in recent weeks, making their case to EU lawmakers and representatives from the European Commission at an event at the European Parliament on April 8.
Europe's tanning industry is the world's largest supplier of leather, according to the EU.
European tanneries import around 40% of the raw materials - such as hides - they use from countries including Brazil and the U.S., industry data shows.
The Commission's analysis, when it first designed the law in 2021, had said leather is "a relevant factor of deforestation according to literature and feedback from stakeholders".
Brussels had already delayed the launch of the policy by two years, after opposition from Brazil, Indonesia and the United States, which say complying would be costly and hurt their exports to Europe. Reuters
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Palm oil news. CSPO Watch May 2026