MethodologyContact usSupportLogin
Key takeaways:
The most-active CPO June contract climbed to a fresh 15‑month high of 4,790 ringgit ($1,189) per tonne before settling at 4,772 ringgit, up 3.04% on the day. All contract months closed 120–140 ringgit higher compared with Friday’s close.
Gains accelerated in the latter half of the session after renewed optimism surrounding Indonesia’s biodiesel program. Comments from Indonesia’s president indicating that the B50 mandate will be implemented this year provided a strong boost to sentiment. The policy, which would raise the blending rate from the current B40, had previously faced delays due to an unfavorable palm oil–to–gasoil (POGO) spread.
However, a sharp rally in gasoil prices since March 20 has significantly narrowed – and at times reversed – the spread, with palm oil trading at a $100–200 per tonne discount to gasoil. This shift has restored the economic viability of higher biodiesel blending rates and reinforced bullish demand expectations.
External markets remained supportive. Strength in crude oil prices, underpinned by ongoing geopolitical tensions in the Middle East, continued to lift the broader energy complex and, in turn, vegetable oils.
In China, palm olein futures on the Dalian Commodity Exchange (DCE) rose by more than 2% across the three most active contracts, while soybean oil posted modest gains. Rapeseed oil futures on the Zhengzhou Commodity Exchange (ZCE) were largely unchanged.
Currency movements added further support. The Malaysian ringgit weakened for a sixth consecutive session, falling 0.46% on the day and extending its cumulative decline to 2.91% over the past six sessions. Over the same period, the active CPO contract has gained 240 ringgit (5.30%), improving Malaysia’s export competitiveness.
Fundamentally, export demand remained robust. Malaysia’s March shipments were estimated to be 40–45% higher month on month, driven in part by forward buying amid expectations of logistical disruptions. However, market participants flagged potential congestion and unloading delays at Middle Eastern ports, which could affect near-term delivery schedules.
In the physical market, prices firmed alongside futures. On a CFR west coast India (WCI) basis, April CPO was offered at $1,285 per tonne against indicative at $1,255–1,260 per tonne, while May shipment was indicated around $1,300 per tonne CFR WCI and June offers were heard at $1,305 per tonne CFR WCI.
On an FOB Indonesia basis, April CPO was offered at $1,245 per tonne versus bids around $1,220 per tonne. Indonesian olein for April shipment on FOB Indonesia basis was offered at $1,195 per tonne against bids near $1,175 per tonne, while offers for May were around $1,210 per tonne FOB Indonesia.
Offers on a CFR WCI basis for soybean oil ranged $1,375-1,380 per tonne for April.May shipment offers were heard at $1,340 per tonne and $1,345 per tonne, while June-July offers were indicated at $1,310-1,320 per tonne. May-June-July (MJJ) offers were also reported as high as $1,350 per tonne, without any bids or trades reported out in the open.For August-September timing, offers stood at $1,305-1,310 per tonne.
For sunflower oil (SFO), offers for Black Sea-origin product ranged $1,435-1,450 per tonne for April and May, while Argentina-origin material remained heard offered at $1,415 per tonne.
In the Americas, CME soyoil futures rallied on Monday, mainly supported by a sharp rise in crude oil prices driven by the war in the Middle East and by an ongoing bullish sentiment brought by the new US renewable fuel obligations announced on Friday.
The most-active May CME soybean oil contract went up by 1.75% day on day to 68.59 cents per lb at 1pm US Eastern time.
Soyoil futures were lifted by continued surging energy prices linked to the US-Israeli and Iranian war, as crude oil prices remained going upwards on Monday, approaching a record monthly rally of nearly 50% in March.
Hopes of a deal to end the war were overshadowed by fresh threats made by US President Donald Trump against Iran. Trump said the US could attack Iran’s energy facilities if no agreement is achieved soon and the Strait of Ormuz is not reopened.
Market participants reacted on Monday with a bullish sentiment to the new US renewable fuels blending targets announced on Friday.
The US Environmental Protection Agency (EPA) said the Renewable Volume Obligation (RVO) for biomass based diesel was set at 8.86 billion Renewable Identification Numbers (RINs) for 2026 and 8.95 billion RINs for 2027, up from the proposed 7.12 billion and 7.50 billion RINs respectively.
Using a commonly cited assumption that compliance reflects a roughly 70% renewable diesel and 30% biodiesel mix, market participants told Fastmarkets the average 2026 BBD RIN equivalency works out to approximately 1.64 RINs per gallon. On that basis, the 8.86 billion-RIN BBD mandate would imply roughly 5.4 billion gallons of BBD production.
The EPA also said it’s finalizing a 70% reallocation of the 2023-2025 Renewable Volume Obligations (RVO) for 2026 and 2027 as part of the small refineries exemptions (SREs) program. Factoring in SREs and the backfilling of D5 and D6 categories (advanced biofuel mandate and ethanol mandate) total 2026 demand for BBD could be 6.34 billion gallons/10.4 billion RINs.
Meanwhile, a measure which reduces in 50% the credits generated by Renewable Identification Numbers (RINs) for all imports of foreign renewable fuels and its feedstocks was postponed to 2028.
CME soymeal futures were mixed on Monday, with shorter-term contracts trading with mild gains with a support from higher soybean futures, while product spreading with soyoil and lower corn prices limited the positive pressure.
The CME May soymeal contract went up by 0.16% day on day to $315.8 per short ton at 1pm US Eastern time.
In the physical market in South America, soyoil bases for short-term loading fell on Monday. The May basis in Brazil was assessed at discounts of 13.9 cents per lb in Argentina and 13.5 cents per lb in Brazil, both to May futures.
On the soymeal front, the May soymeal basis in Brazil fell $1 per short ton compared with the previous assessment, at a discount of $6 per short ton to May futures.
In Argentina, the corresponding soymeal basis declined $0.5 per short ton from the previous price, assessed at a discount of $2 per short ton to the same futures contract.
As of 6:02pm Central European Time, Euronext May rapeseed futures were trading at €506.75 ($581) per tone, up by €6.50 per tonne from the last market close.
FOB Rotterdam rapeseed oil (RSO) prices rose along the curve on Monday, supported by strength in related vegetable oil markets. Underpinning crude oil prices were also higher at the time of writing, adding additional support.
Offers for April were heard at €1,130 per tonne, with bids at €1,105-1,110 per tonne, compared with offers at €1,135 per tonne and bids around €1,099 per tonne on Friday.
For the May-June-July (MJJ) strip, offers were heard at €1,120 per tonne, with buy-side interest at €1,100 per tonne, compared with offers at €1,115 per tonne and bids around €1,097 per tonne on Friday.
Down the curve, August-September-October (ASO) offers were indicated at €1,105 per tonne, with bids at €1,090-1,092 per tonne, compared with offers at €1,097 per tonne and bids at €1,080 per tonne on Friday.
Prices for FOB sunflower oil (SFO) across six EU ports also increased along the curve on Monday, supported by higher prices in the wider soft oils complex as well as by firmer buyer and seller ideas.
For the April-May-June (AMJ) window, offers were reported at $1,465-1,480 per tonne, with bids at $1,442.5 per tonne, compared with offers at $1,460 per tonne and bids at $1,437.5 per tonne on Friday.
As for July-August-September (JAS), offers also stood at $1,465-1,480 per tonne, with buy-side ideas as $1,442.5 per tonne. This compared with offers at $1,460 per tonne and bids at $1,437.5 per tonne on Friday.
On a CIF Mersin basis, the sunflower oil market saw little change, with Ukraine-origin offers heard around $1,410 per tonne and Russia-origin material at $1,395–1,400 per tonne for April shipment. Buyer participation was limited, with indicative ideas around $1,390 per tonne. Two trades were also reported on Friday around $1,391–1,392 per tonne CIF Mersin.
Sunflower sowing has begun in Ukraine, with around 1,200 hectares planted so far, or approximately 0.02% of the projected 5.0 million hectares for 2026. Planting has been reported in parts of western Ukraine. The total sunflower area is expected at 5.0 million hectares, down by 104,000 hectares (about 2%) from 5.104 million hectares sown in 2025.
Are you ready to optimize your purchasing strategy and stay ahead of these market shifts? Reach out to our team today to learn how we can help you navigate the dynamic vegetable oils landscape.