US cash palm oil and refined product prices continued to climb in the week to Thursday August 22; gains were fueled in part by news on the same day that Indonesia, the world’s top exporter of palm oil, will move to a mandatory B40 biodiesel mandate starting on January 1, 2025.

In February 2023, Indonesia launched its B35 program for diesel fuel with a 35% mixture of palm oil. The country’s step up to B40, or a 40% requirement, means that more palm oil will be needed as a feedstock locally in Indonesia, with market estimates indicating that an additional 2 million-2.5 million tonnes of palm oil will be needed.

As a result, this should increase Malaysia’s share of the export market.

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