Palm Oil Hits 5,020 Ringgit, Highest Since December 2024, Ahead of Full B50 Rollout

Jakarta — Crude palm oil (CPO) futures on Bursa Malaysia Derivatives climbed to their highest level since December 2024 on Friday, 21 August 2026. IDX Channel reported a 1.19% rise to 5,020 ringgit per tonne at 15:06 WIB, putting the contract on course for a 6.6% weekly gain, the largest in 24 weeks. A key driver was stepped-up buying in Indonesia ahead of the full rollout of the B50 biodiesel mandate in October.

The week's advance marks a third consecutive weekly gain. A day earlier, on Thursday, 20 August 2026, Trading Economics reported that palm oil had already risen to around 4,965 ringgit per tonne, likewise the highest since December 2024.

B50, El Niño and Dalian drive the rally

Market reports pointed to three main factors behind the rally:

• Buying ahead of full B50. Buyers in Indonesia increased purchases before B50 is fully implemented in October. Trading Economics wrote that the B50 programme, already under way, is expected to divert more palm oil to domestic fuel and reduce export supply from the world's largest producer.
• El Niño risk. A developing El Niño has raised concerns about worsening dryness in Indonesia and Malaysia, which could weigh on output in the coming months.
• Firmer vegetable oils in Dalian. Higher vegetable oil prices on China's Dalian exchange also supported CPO.

Trading Economics also cited a US Department of Agriculture (USDA) projection that global palm oil stocks will fall to a nine-year low in the 2026/27 season, as well as disruptions to sunflower oil exports from Russia and Ukraine that are pushing buyers toward other vegetable oils, including palm oil.

Figures vary slightly across sources

Because the reports were filed at different points in the trading session, the quoted figures differ somewhat. IDX Channel cited 5,020 ringgit per tonne and a 6.6% weekly gain. Trading Economics on 21 August put prices at around 4,990 ringgit per tonne with a weekly gain of nearly 6%, while UkrAgroConsult said prices were nearing 5,000 ringgit per tonne. All three agree prices were at their highest since December 2024.

Headwinds: Malaysian stocks and slower exports

Several factors capped the gains. Malaysian palm oil stocks rose to a five-month high in July 2026. Refiners in India may switch to cheaper soybean oil, with soyoil imports expected to hit a record in August.

Cargo surveyor data also showed weaker Malaysian palm oil exports for 1–20 August compared with the same period in July:

Cargo surveyor	Change in 1–20 August exports vs July
Intertek Testing Services	Down 13.2%
AmSpec Agri Malaysia	Down 5.5%

Looking ahead, the Malaysian Palm Oil Council (MPOC), as cited by IDX Channel, expects Malaysian CPO prices to hold above 4,600 ringgit per tonne in September 2026, supported by tighter supply and disruptions to global trade flows.

For Indonesia, the rally signals that the market is starting to price in additional palm oil absorption for biodiesel. Higher CPO prices will eventually feed into the export reference price and the biodiesel market index price (HIP) in subsequent months, as both are calculated from average prices over a preceding period. Follow the numbers on our prices and biodiesel HIP data pages.