
Malaysia is assessing whether to raise the palm oil share in its biodiesel blend, following Indonesia's 40% palm-based biodiesel mandate. Brazil has also raised its biodiesel blend in diesel to 15% from August 1, and the US has proposed a record biofuel blending volume.
Weaker near-term edible oil demand from India caps the upside.
Higher biodiesel mandates would divert more palm and soy oil into fuel, tightening edible oil supply and supporting vegoil prices. Biofuel demand also links vegoil prices to crude oil.
After 548 past bullish policy events, Palm Oil moved a median +0.4% over 5 sessions (61% higher; middle half -0.7% to +2.1%), and +0.9% over 20.
After 842 past bullish policy events, Soybean Oil moved a median +0.2% over 5 sessions (52% higher; middle half -1.6% to +2.1%), and -0.5% 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.