Soybean oil and palm oil led gains across the vegetable oil complex last week, supported by a rebound in Brent crude and further reinforcement of biofuel policy in Indonesia and Malaysia.

CBOT soy oil rose to 69.63 US cents/lb from 65.50 US cents/lb a week earlier, supported by the crude rebound and stronger-than-expected NOPA data. NOPA members crushed 226.161 million bushels of soybeans in March, up 8.3% month on month and 16.3% year on year. It was the highest March crush on record and the second-highest monthly total ever, even as the figure came in below the roughly 229.978 million bushels that markets had expected.

BMD crude palm oil prices strengthened to USD 1,127/mt from USD 1,120/mt the previous week. In Indonesia, the Directorate General of Oil & Gas issued a circular to fuel distribution companies formalising the B50 biodiesel mandate, with a three-month transition period starting on 1 July. Minister of Agriculture Andi Amran Sulaiman stated that all diesel imports will stop from 1 July. Reports also circulated that the Indonesian navy will operate on B50.

In Malaysia, MPOB stated that the move from B10 to B12 is expected to add 130,000 tonnes per year to biodiesel consumption, with a further expansion to B15 potentially adding around 204,000 tonnes annually. At the same time, bearish signals are present. SPPOMA estimated Malaysian palm oil production up 31.13% for 1 to 20 April, while surveyors reported exports for the same period down 25% to 884,273 mt.

Crude rapeseed oil prices moved higher, following the broader complex. However, the rapeseed crop picture continues to look comfortable. The FAS USDA projects EU rapeseed area up 2.7% year on year for 2026/27, with production broadly stable at 20.4 Mmt. Germany’s 2026 crop is estimated at 4.154 Mmt, up 4.5% year on year, according to DRV. Global rapeseed and canola production is expected to reach a new high of 86.72 Mmt, up from 85.60 Mmt last year, according to Oil World.

Crude sunflower oil prices also moved higher. EU sunflower seed production is forecast up 14.3% year on year in 2026/27 to 9.9 Mmt, according to FAS USDA, and UA+RU combined output is expected at 32.475 Mmt versus 27.6 Mmt last season, according to IKAR and APK-Inform.

Freight costs remain elevated across vegetable oil routes. The Malaysia/Indonesia to Rotterdam rate rose to USD 105/mt, up from USD 95/mt previously and USD 80/mt before the Middle East conflict. The ECSAM to India rate remains at USD 135/mt versus USD 56/mt before the conflict.


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