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Malaysia's plantation ministry and Finance Ministry are in talks to cut the palm oil export tax from 8% to between 4% and 6%, and to reduce the biodiesel mandate, to address the global edible oil shortage. Indonesia's export ban from April 28 pushed crude palm oil prices above RM7,000 per tonne, and April stockpiles rose 11.5% month-on-month.
Lower Malaysian export taxes and a reduced biodiesel mandate would free up palm oil supply, pressuring palm prices, though Indonesian export restrictions keep the market tight.
themalaysianreserve.comDayang NorazharMay 20, 2022After 399 past bearish policy events, PALMOIL moved a median -0.0% over 5 sessions (49% higher; middle half -1.3% to +1.1%), and +0.2% over 20.
After 196 past neutral policy events, SBO moved a median +0.1% over 5 sessions (52% higher; middle half -1.6% to +2.0%), 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.
