Report Summaries 1. Report Industry Investment Rating - The industry investment rating suggests a range-bound market with a recommendation to wait and see [2] 2. Core View of the Report - The report provides a comprehensive analysis of the current situation of the global oil and fat market, including spot and futures prices, inventory levels, and production and export data from major producers. It also highlights policy changes in Indonesia and the production progress of soybeans in Brazil and the United States [1][2] 3. Summary by Relevant Catalogs Spot Price - **24 - degree Palm Oil**: On October 15, 2025, prices in Tianjin, Zhangjiagang, and Huangpu were 9420, 9260, and 9200 respectively, each down 80 from the previous day [1] - **First - grade Soybean Oil**: Prices in Tianjin, Zhangjiagang, and Huangpu on October 15, 2025, were 8420, 8520, and 8590 respectively, each down 30 from the previous day [1] - **Fourth - grade Rapeseed Oil**: Prices in Zhangjiagang, Wuhan, and Chengdu on October 15, 2025, were 10150, 10190, and 10470 respectively, each down 30 from the previous day [1] Futures Data - **Bean - Palm Main Contract Spread**: On October 15, 2025, it was - 1070, up 20 from the previous day [1] - **Rapeseed - Bean Main Contract Spread**: On October 15, 2025, it was 1680, down 39 from the previous day [1] - **Warehouse Receipts**: Palm oil warehouse receipts remained at 500; soybean oil warehouse receipts increased by 850 to 26294; rapeseed oil warehouse receipts remained at 7590 [1] International Market Conditions - **India**: In September 2025, total vegetable oil imports were 1639743 tons, slightly down from August. Palm oil imports decreased significantly, while soybean oil and sunflower oil imports increased [2] - **Indonesia**: Plans to raise the crude palm oil (CPO) export tax from 10% to 15% to fund the transition from B40 to B50 biodiesel. B50 is in the final testing stage, with full - scale testing expected in Q2 2026 and official implementation in the second half of the same year [2] - **Malaysia**: In September 2025, palm oil production was 184.12 million tons, with a month - on - month decrease of 0.73% and a year - on - year increase of 1.06%. From October 1 - 10, 2025, production increased by 6.59% month - on - month. Exports from October 1 - 10 increased by 9.9% (ITS) and 19.4% (AmSpec) compared to the previous month [2] Domestic Market Conditions - **Soybean Production**: As of October 11, 2025, Brazil's 2025/26 soybean sowing rate was 11.1%. As of September 28, 2025, the US soybean good - to - excellent rate was 62%, and the harvest rate was 19% [2]

Core Insights - The Indonesian government is considering implementing a Domestic Market Obligation (DMO) policy for palm oil companies, requiring them to prioritize domestic crude palm oil supply before exporting the remainder to support the upcoming B50 biodiesel program [1][2] Group 1: Domestic Market Obligation (DMO) - The DMO policy mandates that companies must meet domestic market demand before exporting products, which will redirect some crude palm oil originally intended for export to the domestic market [1] - The B50 biodiesel plan involves a blend of 50% palm oil-based biodiesel and 50% petro-diesel, with the current mandatory blending ratio being 40% (B40) [1] - The implementation of B50 is expected to require 19 million tons of crude palm oil, an increase of approximately 4 million tons compared to the B40 phase, while palm oil exports will be reduced by 5.3 million tons [1] Group 2: B50 Biodiesel Program - The Indonesian government has completed trials for the application of B50 in various transportation modes, including trains, ships, heavy equipment, and vehicles [1] - The official rollout of the B50 program is planned for the second half of 2026, pending confirmation of its cleanliness and environmental benefits [1] Group 3: Additional Measures - In addition to the DMO, the government is evaluating two other measures to ensure the supply of biodiesel raw materials: strengthening oil palm cultivation management and establishing new oil palm plantations [2]