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Head of the National Research and Innovation Agency (BRIN) Laksana Tri Handoko emphasized his full support for the down-streaming of palm oil to create value-added derivative products

Oil prices rose on Tuesday as the United States and China extended a pause on higher tariffs, easing concerns an escalation of their trade war would disrupt their economies and crimp fuel demand in the world’s two largest oil consumers.

U.S. President Donald Trump on Sunday urged China to quadruple its soybean purchases ahead of a key tariff truce deadline, sending Chicago soybean prices higher, though analysts were quick to question the feasibility of any such deal.

Indonesia’s palm oil exports in MY 2024/25 will fall to 22.8 million tonnes due to lower demand from key buyers such as India, China and the US, as well as the impact of the B40 mandate on biodiesel. However, production is forecast to increase by 3% to 47 million tonnes in 2025/26, driven by favourable weather conditions and sufficient fertiliser use, Kedia Advisory said.

Malaysian palm oil futures closed more than 3% up, its highest close since April 3, after Malaysia Palm Oil Board’s (MPOB) supply data and cargo surveyors’ export estimates were published on Monday

The crude palm oil (CPO) futures contract on Bursa Malaysia Derivatives is likely to trade lower this week, amid expectations of higher production and stock levels.

The Executive Order issued on July 31 further modified the US reciprocal tariffs and imposed a more uniform tariff at 19% to 20% for six of the 10 ASEAN countries: the Philippines, Indonesia, Malaysia, Thailand, Vietnam, and Cambodia. Laos and Myanmar have been slapped with the highest tariffs at 40%, while Brunei’s is 25%. In contrast, the April “Liberation Day” tariffs were more widely dispersed, ranging from 17% to 49%, with the Philippines having one of the lowest US tariffs following Singapore at 10%.

Malaysia does not see India’s ambitious push for self-reliance in edible oils through the National Mission on Edible Oils – Oil Palm (NMEO-OP) as a threat but as a strategic opportunity. The Malaysian Palm Oil Council (MPOC) has welcomed the initiative as a forward-looking step to boost India’s edible oil security, while reaffirming the role of Malaysia, the world’s second-largest producer of palm oil, as a key and long-term supplier.

The Sarawak Dayak Oil Palm Planters Association (Doppa) has called for Sarawak to be given priority in the federal government’s RM1.4 billion allocation for oil palm replanting under the 13th Malaysian Plan (13MP).

World food commodity prices rose in July to their highest in over two years, as a jump for vegetable oils and record levels for meat outweighed falling cereal, dairy and sugar prices, the United Nations' Food and Agriculture Organization said.

The Indian Vegetable Oil Producers’ Association (IVPA) and the Indonesian Palm Oil Association (GAPKI) have signed a three-year agreement to deepen economic ties and ensure food security, Free Press Journal reported

07/08/2025 (Reuters), Kuala Lumpur - Malaysian palm oil futures fell on Thursday, extending losses from the previous session, amid concerns over rising inventories and production, while weak export demand further pressured the market.