Palm oil futures for December delivery fell as much as 1.1 percent on Bursa Malaysia after soybean oil declined on an EPA notice that opens the door to cutting biodiesel and renewable fuel quotas. Chicago soybean oil was little changed after falling 1.7 percent the prior session.
Palm oil was down about 12 percent year to date.
A possible reduction in US biofuel quotas weakens the demand outlook for vegetable oils used in biodiesel, pressuring palm and soybean oil prices. The palm-soy spread narrowing further reduces palm's relative appeal.
After 400 past bearish policy events, Palm Oil moved a median -0.0% over 5 sessions (49% higher; middle half -1.3% to +1.1%), and +0.2% over 20.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.