Palm oil climbs on Malaysia biodiesel demand expectations
05/05/2026 (Director Talks Interviews) - Malaysian palm oil prices rose as investors reacted to optimism around the country’s planned B15 biodiesel rollout in June. The policy would lift the palm-based biodiesel blend in regular diesel to 15%, creating a larger domestic use case for crude palm oil.
Traders are waiting for April production estimates from the Malaysian Palm Oil Association. Stronger output could limit further price support, while tighter production could make the biodiesel mandate more important for market balance.
Palm oil is also being influenced by external signals. Softer US soybean oil prices can weigh on sentiment because buyers compare prices across edible oils. Lower crude oil prices can reduce the appeal of biodiesel by weakening the economics of blending. At the same time, a softer ringgit can support Malaysian exports by making palm oil cheaper for overseas buyers.