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Indonesia is considering raising its biodiesel blend from the obligatory 30% palm oil mix toward B40, with a road test nearing completion. Coordinating Minister Airlangga Hartarto said the cost of producing palm-based biodiesel is now below fossil diesel because of high crude oil prices.
The government has not yet set a date for B40 implementation.
A higher biodiesel mandate would move more palm oil into fuel, which could tighten vegetable oil supply and lift prices. Expensive crude oil improves the economics of palm biodiesel and makes the mandate more likely to proceed.
chemanalyst.comNov 9, 2022After 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.
