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Indonesia's government officially imposed a palm oil export ban starting April 28, 2022, covering crude palm oil, red palm oil, POME, RBD palm oil and used cooking oil. Officials said the ban continues until bulk cooking oil reaches Rp14,000 per liter nationwide and set strict penalties for violations.
A broad export ban removes a large share of world palm oil supply, pushing palm and soyoil prices sharply higher and boosting demand for substitute vegetable oils.
setkab.go.idOffice of Assistant to Deputy Cabinet Secretary for State Documents & TranslationApr 27, 2022After 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 206 past neutral policy events, Soybean Meal moved a median -0.4% over 5 sessions (44% higher; middle half -2.3% to +1.8%), and -0.7% 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.
The Indonesian ban's implementation on April 28 drove a spike in prices; the subsequent drop of more than 10% reflects reversal and profit-taking as the ban's duration and storage constraints became clearer.
