Kuala lumpur: Crude palm oil (CPO) futures on Bursa Malaysia Derivatives ended lower today, dragged by Indonesia's decision to delay the introduction of its B50 biodiesel mandate.

According to BERNAMA News Agency, Anilkumar Bagani, head of commodity research at Mumbai-based Sunvin Group, stated that Indonesia has scrapped plans to increase the mandatory biodiesel blend to 50 percent this year, maintaining the current mix of 40 percent palm oil-based fuel and 60 percent diesel. This decision is viewed as bearish news for local palm oil, compounded by the Indonesian government's plan to raise CPO export levies by 2.5 percentage points instead of the previously anticipated five percentage points.

David Ng, a proprietary trader at Kuala Lumpur-based Iceberg X Sdn Bhd, noted that market sentiment was also impacted by weaker soybean oil prices on the Chicago Board of Trade (CBOT) and crude oil prices. He mentioned that high CPO stock levels continued to weigh on sentiment, reducing the upside momentum, with buyers remaining on the sidelines amid lingering oversupply concerns.

At the close, the January 2026 contract was unchanged at RM3,950 per tonne, February 2026 slipped RM39 to RM3,961 per tonne, and March 2026 fell RM60 to RM3,980 per tonne. The April 2026 contract eased by RM69 to RM3,990 per tonne, May 2026 dropped RM72 to RM3,997 per tonne, and June 2026 reduced RM68 to RM3,998 per tonne.

Trading volume surged to 147,837 lots from 91,936 lots on Wednesday, while open interest grew to 259,206 contracts from 257,760 contracts previously. The physical CPO price for January South decreased by RM40 to RM3,990 per tonne.