Delays in Biodiesel Mandates Weighs on Palm Oil Futures

Vegetable oil prices were mixed on Thursday as the resolution of the grain inspectors strike in Argentina allows the world’s largest exporting country to resume shipments. Profit-taking in soybean futures, following weaker-than-expected export sales data, also weighed on soybean oil prices. However, a late-session rally and the liquidation of bull spreads by funds left nearby palm oil futures marginally lower, while deferred contracts posted gains. Expectations that the Indonesian government would delay implementing its B40 mandate also contributed to weakness in the vegetable oils complex. Traders had been worried the government might wait to implement the order until the end of 2022. After the market closed, the Malaysian government announced it would delay implementing its B40 mandate by six months. While the reported reasons for the delay in…