Analyst: The softness in crude palm oil prices may be only temporary.

Lian Chang International Securities analysts Ivy Ng Lee Fang and Yue Jia Lim reported that the weakness in crude palm oil prices may be temporary, as palm oil supply may have peaked in October and is expected to trend downward until February. The recent price decline is due to market concerns that Indonesia may delay its 2026 mandatory blending policy for biodiesel, as well as the United States evaluating biofuel policies during the government shutdown. However, these analysts stated that palm oil has regained competitive pricing compared to other edible oils and may benefit from tariff exemptions under the US-Malaysia trade agreement. Lian Chang International maintains its overweight rating on the Malaysian plantation sector, citing stronger-than-expected crude palm oil prices and Indonesia's plan to introduce B50 biodiesel in mid-2026 as key catalysts.