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Malaysian palm oil futures extended losses on Thursday for a second consecutive session, weighed down by weaker soyoil prices and concerns over rising production in the weeks ahead.

Indonesia’s recent decision to raise its export tax on crude palm oil (CPO) from 7.5% to 10% is expected to have significant repercussions across global markets, particularly impacting Africa.

So far, the driver of global vegetable oil price growth has been soybean oil, which has risen 25% in 2.5 months on expectations of increased biofuel blending mandates in the US. But recent actions by the Trump administration have sent soybean oil prices plummeting, putting pressure on palm and sunflower oil prices.

The crude palm oil (CPO)futures contract on Bursa Malaysia Derivatives closed lower onThursday, tracking weakness in the soybean oil market, said palmoil trader David Ng.

The Indonesian government has increased the export tax on crude palm oil (CPO) from 7.5% to 10% of the reference price on 17 May in a bid to fund its biofuel programme and replanting efforts, Asia News Network wrote.

Malaysia is showing a rise in palm oil exports in May 2025, supported by rising futures and a favorable pricing position compared to competitors. According to Oleksiy Udovenko, regional director of the Malaysian Palm Oil Council, exports increased by 6.6-14.2% in the first 15 days of May, and futures on the Bursa exchange exceeded 3,850 MYR/t, adding more than 1%. A reduction in export duty from 10% to 9.5% in June and a spread with soybean oil are increasing the competitiveness of Malaysian products in the global market

China and 10 ASEAN countries have fully completed negotiations on the Version 3.0 China-ASEAN Free Trade Area (CAFTA), a milestone in bilateral trade cooperation

Malaysian palm oil futures snapped a two-day winning streak on Wednesday, having reversed earlier gains as rising output and inventory levels weighed on the market, although stronger rival edible oils and relatively bullish export data limited the fall.

Malaysian palm oil production rose sharply by 298,000 tonnes in April compared to March, rebounding from harvesting delays in early March caused by the monsoon season.

Prices of Nigeria’s palm oil may rise as Indonesia – top grower of the crop has increased its Crude Palm Oil (CPO) export levy to 10 percent from 7.5 percent.

The Malaysian Palm Oil Council (MPOC) expects palm oil prices to remain within the RM3,750 to RM4,050 per tonne range in May 2025, before gradually recovering amid weak energy prices and biodiesel margins

Regulations such as the European Union Deforestation Regulation (EUDR) and the Corporate Sustainability Due Diligence Directive (CSDDD) may also change the world of agricultural commodities, demanding stringent proof of sustainable practices