I just looked at the Malaysian official new notice regarding the biodiesel blending plan, and it was a bit disappointing. The market had been speculating that they would significantly increase the blending ratio of palm oil-based diesel, with many betting that this would quickly clear local inventories. However, the details of the implementation announced are far less aggressive, and instead, they seem to be taking a gradual approach.

This directly shattered the bullish expectations. The earlier buy-in at higher prices saw that the policy wasn't as tough as imagined, and traders immediately cut losses and exited. Today's selling pressure mainly comes from these disappointed funds. Frankly, there's a big gap between the policy slogans and the actual supply and demand changes, plus a lot of administrative variables. Even though long-term palm oil diesel consumption is expected to increase, without short-term strong enforcement support, prices will still be dragged along by related commodities like crude oil and soybean oil. Whether the 4,550 ringgit level can hold depends mainly on their subsequent implementation efforts.