CPO FUTURES CLOSE LOWER ON EXPECTATIONS INDONESIA MAINTAINS B40 BIODIESEL PROGRAMME

By Muhammad Fawwaz Thaqif Nor Afandi and Abdul Hamid A Rahman

KUALA LUMPUR, Jan 13 (Bernama) -- Crude palm oil (CPO) futures on Bursa Malaysia Derivatives ended lower on Tuesday due to the expectation that Indonesia will continue its B40 biodiesel programme this year, said a trader.

Kuala Lumpur-based proprietary trader David Ng of Iceberg X Sdn Bhd said that the news regarding Indonesia potentially delaying its B50 biodiesel programme has negatively impacted market sentiment.

"CPO prices are expected to find support at RM4,000 per tonne, while resistance is seen at RM4,180,” he told Bernama, adding that Indonesia will likely implement the B50 biodiesel programme next year.

It has been reported that Indonesian Coordinating Minister for Economic Affairs Airlangga Hartarto announced that the government will not introduce B50 biodiesel this year. 

Indonesian President Prabowo Subianto has instructed that the biodiesel policy stays at the B40 level, with ongoing studies and preparations for the eventual B50 implementation.

At the close, the January 2026 contract fell RM15 to RM3,965 per tonne, February 2026 eased RM30 to RM4,030, March 2026 slid RM26 to RM4,064. 

The April 2026 contract weakened by RM24 to RM4,079, May 2026 slipped RM24 to RM4,083 per tonne, and June 2026 edged down RM22 to RM4,076 per tonne.

Trading volume increased to 113,314 lots from 90,086 lots on Monday, while open interest advanced to 260,968 contracts from 258,843 contracts previously.

The physical CPO price for January South is unchanged at RM4,050 per tonne.

-- BERNAMA