InfoSAWIT, NUSA DUA — The palm oil market is entering a period of uncertainty, influenced by policy changes in Indonesia, production fluctuations, and geopolitical tensions. This was stated by Abdul Rasheed Jan Mohammad, CEO of Westbury Group, at the Indonesia Palm Oil Conference (IPOC) 2025.

One of the most pressing issues is Indonesia's plan to increase the biodiesel blend from B40 to B50. Rasheed argued that this policy is debatable as it will have a massive impact on global supply and prices in importing countries.

"Do we really need to increase the biodiesel blend when crude oil prices are weakening? Is palm oil more important for food or energy?" he questioned.

He predicted that the surge in demand for biodiesel could put significant pressure on supply, leading to potential discussions about the Domestic Market Obligation (DMO) again. Rasheed also noted that the October 2025 stock level in Malaysia was 2.46 million tons, but anticipated a significant decrease in December due to the low production season and expected export increases.

Rasheed projected CPO prices on the Malaysian Exchange would trade in the range of RM 4,100–4,300 per ton for the December 2025–January 2026 period and RM 4,200–4,500 per ton for the January–March 2026 period. The greatest uncertainty remains Indonesia's B50 policy. (T2)