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Indonesia will impose higher levies on crude palm oil (CPO) starting Dec. 10, an official document showed on Thursday, a move that could impact demand next year as it seeks to generate funds for its ambitious palm-based biodiesel programme.

Malaysian palm oil futures ended 1% lower on Wednesday as weaker rival Dalian oils eclipsed support from forecasts of tight supply, with lower-than-expected biodiesel consumption in Indonesia further hitting sentiment. The benchmark palm oil contract for February delivery on the Bursa Malaysia Derivatives Exchange closed 34 ringgit, or 1.02%, lower to 3,313 ringgit ($813.01) a tonne, declining for a second session in three.

FITCH Ratings Inc expects crude palm oil (CPO) prices to decline from current levels and assumes an average of US$560 (RM2,280) per tonne for 2021, although CPO prices are performing above expectations this year.

The Philippines has been advised to push for a more doable sectoral bilateral trade agreement with the US before rolling to a more comprehensive free trade agreement, if not push for a wider US-ASEAN FTA under the new Biden administration.

The agreement includes reduced tariffs on exports from Israel to Ukraine, as well as on products imported to Israel. It provides free access to the Ukrainian market on many items that until now were subject to customs tax, including machinery, medical equipment, plastic and rubber products, chemicals, fruits and vegetables, and more.

The Philippines' domestic bioethanol reference price fell to 56.05 Philippine pesos/litre ($1,167/m³) in the first half of November, down from P56.27/l in the second half of October and P63.70/l in the first half of November 2019, according to the national Sugar Regulatory Administration (SRA).

The palm oil industry needs to formulate a new strategy in order to face the challenges to business created by the COVID-19 pandemic, chairman of the Indonesian Palm Oil Association (Gapki), Joko Supriyono, said.

Indonesia must make policy changes to ensure it can keep subsidising its ambitious biodiesel programme, the head of a government agency in charge of collecting and managing palm oil export levies, told a virtual conference on Wednesday.

Coordinating Minister for Economic Affairs Airlangga Hartarto ensures the government will continue to bolster both the palm oil industry's economic resilience and socio-environmental sustainability through a string of policies.

Indonesian Foreign Minister Retno Marsudi called on the European Union (EU) to give fair treatment to palm oil during the 23rd ASEAN-EU Ministerial Meeting held online on December 1.

The Ministry of Plantation Industries and Commodities (MPIC) will continue to work on stabilising oil palm and rubber prices, while helping to ease the financial burden of agri-commodities smallholders.

US Customs and Border Protection will detain shipments containing cotton and cotton products originating from the Xinjiang Production and Construction Corps, a major cotton producer in the region, which is home to about 11 million Uyghurs, a predominantly Muslim ethnic minority.