
Indonesia plans to start its B35 biodiesel mandate from February 1, requiring diesel to contain 35% palm-based fatty acid methyl ester. The Indonesia Biofuel Producers Association projects palm use for biodiesel will rise to 11.44 million tonnes in 2023 from 9.6 million in 2022.
Diverting significantly more palm oil into biodiesel tightens global vegetable oil supplies, supporting palm and soy oil prices while reducing exportable surplus.
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.
After 27 past neutral policy events, ULSD / Diesel moved a median -1.4% over 5 sessions (41% higher; middle half -4.3% to +2.6%), and -4.6% 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.