Palm oil futures have moved higher in recent sessions, regaining strength on improved demand expectations, a softer ringgit, and supportive policy signals from Indonesia. Benchmark Malaysian contracts climbed above MYR 4,100 per tonne, marking the strongest performance in over a month as buyers positioned ahead of key consumption periods and broader sentiment in global edible oils turned more constructive.
This rebound reflects a convergence of favourable factors. The approach of Lunar New Year and Ramadan has bolstered short-term demand expectations across key markets, while gains in soyoil and sunflower oil have reinforced positive momentum across the vegetable oil complex. A weaker Malaysian ringgit has further enhanced export competitiveness, encouraging renewed buying interest.
Indonesia, the world’s largest producer, has provided additional clarity that strengthens the near-term outlook. The government confirmed it will maintain the B40 biodiesel blending mandate through 2026 rather than moving to B50 as previously anticipated. While this decision removes some pressure from domestic supply, it also ensures a stable policy framework that supports long-term demand growth through biofuels. In parallel, Indonesia will raise palm oil export levies from March to reinforce funding for its biodiesel programme — a move that signals continued government commitment to supporting industry fundamentals.
Dekel Agri-Vision PLC (LON:DKL) aspires to become a leading agro-industrial company in West Africa, one that creates value for shareholders whilst at all times placing the interests of the local communities and environment in which it operates in at the heart of its operations.
