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Indonesian President Joko Widodo announced a ban on palm oil exports covering both crude and refined oil, which Indonesia later reversed for crude palm oil before reinstating it. The government said the ban was meant to curb rising food prices and local unrest, and the article argues it could upend the economy and push global vegetable oil prices higher.
Indonesia accounts for more than a third of global vegetable oil exports, so restricting its palm oil supply tightens world vegetable oil markets and supports prices for substitute oils such as soybean oil.
carnegieendowment.orgTrinh NguyenApr 28, 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.
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.
