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Indonesian president-elect Prabowo Subianto hopes to introduce mandatory 50% palm oil-based biodiesel blending by early next year. He said this would cut fuel imports by $20 billion per year.
The government had already said it planned to raise blending to 40% in January 2025 from 35%.
A higher biodiesel mandate would absorb a larger share of Indonesia's palm oil output, tightening export supply and supporting palm oil prices. Soybean oil could also gain as a substitute feedstock.
reuters.comAug 26, 2024After 548 past bullish policy events, PALMOIL 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, SBO 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.
Prabowo's push for 50% palm biodiesel blending implies higher domestic palm demand, supporting prices.
