Palm oil prices rose 2% amid increased exports and Indonesia's plans to introduce the B50 standard for biofuels

Palm oil futures in Malaysia surged to a multi-month high amid a two-day 4% rise in oil prices, higher oil exports from Malaysia and Indonesia's decision to introduce a B50 mandate on biofuels.

Indonesia confirmed its intention to increase the biofuel blend to 40% (B40) in January and is preparing to ramp up palm oil production to eventually introduce a 50% (B50) blend.

December Brent crude futures rose 4% to $76/barrel this week (-2% for the week, +4% for the month) amid a decision by China's banks to cut key lending rates by more than 25 basis points to stimulate economy, which can increase demand for energy carriers in China.

December palm oil futures on Bursa Malaysia yesterday rose 2% to 4,386 ringgit/t or $1,014/t (+2.7% on the week) amid increased oil exports from the country.

According to ITS and AmSpec surveyors, Malaysia's palm oil exports for October 1-20 increased compared to the same period in September by 8.69-9.51% to 0.98-4.01 million tons.

On the exchange in Dalian, the most active contract for soybean oil rose by 1.02%, and for palm oil - by 2.06%.

At the same time, the depreciation of the Malaysian ringgit against the US dollar restrains further growth of the dollar price.