Malaysian palm oil futures dropped below MYR 4,350 per tonne, reversing previous session gains, due to weak demand and bearish export data. India's palm oil imports hit a nine-month low in December as prices soared to a 2.5-year high, leading refiners to opt for cheaper soyoil. Meanwhile, Malaysia’s palm oil shipments declined by 2.5% to 7.8% compared to the previous month, according to cargo surveyors. However, expectations of strong Chinese demand ahead of the Lunar New Year in late January offered some support. Additionally, Malaysia introduced an updated Sustainable Palm Oil Standard, enhancing sustainability and traceability, which is likely to strengthen its market position. In Indonesia, the top producer, authorities allocated 15.6 million kiloliters of biodiesel for 2025 and set a February deadline for implementing higher biodiesel blends. This policy aims to boost domestic palm oil usage and aligns with Jakarta’s energy diversification goals.