Global Biofuel Push Likely to Support Palm Oil Outlook — Market Talk

Rising biodiesel mandates in governments across the world are expected to boost 2026 demand for vegetable oils, particularly palm and soybean, Affin Hwang IB analyst Nadia Aquidah says. Indonesia's planned rollout of its B50 biodiesel mandate, which requires a 50% palm-based blend, could absorb an additional 3.5 million to 4.0 million tons of crude palm oil annually, reinforcing its role as a key swing factor in global markets, she says. The U.S. raises renewable fuel targets, which further supports demand for vegetable oils demand. Affin Hwang IB raises its CPO price assumptions to between 4,450 ringgit and 4,550 ringgit a ton for 2026 from between 4,100 ringgit and 4,250 ringgit a ton. It also raises its rating for the Malaysian plantation sector to overweight from neutral, naming Johor Plantations and TA Ann as top picks. (yingxian.wong@wsj.com)