According to Jinshi, Xinhu Futures commented that due to the strengthening of the Fed's interest rate cut expectations, the US dollar plummeted, and international commodities generally strengthened. Although CBOT soybeans were weak due to the expected increase in US soybean production, Indonesia announced the implementation of the B40 policy in 2025, which supported palm oil prices.
In the afternoon today, the price of brown oil increased further, with P2501 rising by 3% at one point, increasing by more than 40,000 lots. According to news, the president-elect of Indonesia hopes to implement the mandatory B50 biodiesel regulations early next year, but the B50 test has not been completed yet, and the probability of implementing B40 in 2025 is greater.
At present, the inventory of international palm oil producing areas is neutral and not high. From November to February, it will enter the seasonal production reduction season. At the beginning of 25 years, Indonesia will implement B40. In the medium and long term, palm oil will maintain a bullish operation. However, the increase in US soybean production, the expected increase in soybean production in South America and Brazil, and the trend of global commodities will limit the pace of palm oil's rise. The share of palm oil alternative consumption is expected to further decrease in the later period. In the short term, we need to pay attention to whether the pressure above P2501 can be effectively broken.
