The proposal “is supportive of edible oil demand and crude palm oil prices, as the biodiesel mandate will help sustain US consumption of edible oils,” CIMB Securities analysts Ivy Ng Lee Fang and Lim Yue Jia said in a note.
Palm oil jumped above the 4,000 ringgit mark to track gains in soyoil, which surged on Washington’s proposal to allow refiners to blend a record amount of biofuels into gasoline and diesel next year.
The long-awaited plan that was unveiled by the Environmental Protection Agency on Friday aims to boost American biofuel production and deter imports. It would require refiners to mix a record 24.02 billion gallons of biofuels into conventional diesel and gasoline. That’s nearly 8% higher than the 2025 target and was more-than-expected by many analysts.
