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Indonesia raised its mandatory biodiesel blend to 35% palm oil-based content in February, up from 30%. The eight-year biodiesel programme has reduced diesel imports and absorbed excess palm oil output.
Pertamina has also tested a 40% blend and started producing palm-based diesel for export.
A higher domestic biodiesel mandate locks in palm oil demand and reduces the volume available for export, which supports palm oil prices. It also ties palm oil prices more closely to energy policy.
reuters.comFransiska NangoyApr 6, 2023After 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 187 past neutral policy events, Crude Oil (WTI) moved a median -0.1% over 5 sessions (49% higher; middle half -4.0% to +3.5%), and +0.1% 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.
