# Crude palm oil prices dive to six-month low as Indonesia revises export policy - Fastmarkets

> Crude palm oil futures on Bursa Malaysia fell 3.3% to 3,455 ringgit a tonne on April 27, the lowest since early October. Indonesia changed its domestic market obligation rules, cutting the domestic cooking oil target to 300,000 tonnes a month and tightening the export ratio from 6:1 to 4:1, effective May 1.

- Date: 2023-04-28 · published 2023-04-28T12:00:00.000Z
- Category: policy · region Indonesia · magnitude high
- Page: https://feedsoft.ai/events/4383-crude-palm-oil-prices-dive-to-six-month-low-as-indonesia-revises-export-policy
- Commodities: [Palm Oil](https://feedsoft.ai/c/PALMOIL.md), [Soybean Oil](https://feedsoft.ai/c/SBO.md)

## Why it matters

The policy shift is expected to free more Indonesian palm oil for export, increasing global availability and pressuring prices from the largest producer.

## Read by commodity

- SBO: bearish ▼
- PALMOIL: bearish ▼

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| PALMOIL | 2023-04-30 | 1 | -11.4% | -13.4 | Indonesia's revised domestic market obligation and looser export ratio, effective May 1, pushed futures to a six-month low in the days just before the window, signaling more export supply. |
| SBO | 2023-05-01 | 1 | -3.0% | -3.0 | Palm oil fell to a six-month low on Indonesia's looser export policy, which adds vegetable oil supply to global markets and pressures competing soybean oil; the policy took effect May 1. |
| PALMOIL | 2023-05-01 | 1 | -11.4% | -12.3 | Indonesia's loosened DMO and export ratio, effective May 1, raise expected global supply and pushed CPO to a six-month low, setting up the May 1 drop. |

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| PALMOIL | 2022-06-10 | [Palm flops to two-month closing low as Indonesia eases export rules - Markets - Business Recorder](https://feedsoft.ai/events/41051-palm-flops-to-two-month-closing-low-as-indonesia-eases-export-rules-markets.md) | -6.3% | -32.4% |
| PALMOIL | 2021-08-26 | [Indonesia's biofuel B40 plan expansion at risk on high palm oil prices - Fastmarkets](https://feedsoft.ai/events/45437-indonesia-s-biofuel-b40-plan-expansion-at-risk-on-high-palm-oil-prices.md) | -2.5% | +2.0% |
| PALMOIL | 2018-11-26 | [Malaysian palm oil price in biggest fall in 21 months as Indonesia axes export levy \| The Star](https://feedsoft.ai/events/61908-malaysian-palm-oil-price-in-biggest-fall-in-21-months-as-indonesia-axes-export.md) | -0.5% | +2.0% |
| PALMOIL | 2022-09-22 | [Indonesia’s shifting export policies in an effort to boost Crude Palm Oil exports \| Edelman Global Advisory](https://feedsoft.ai/events/15790-indonesia-s-shifting-export-policies-in-an-effort-to-boost-crude-palm-oil.md) | -3.8% | -1.5% |
| PALMOIL | 2022-04-25 | [Crude palm oil excluded from Indonesia export ban](https://feedsoft.ai/events/41968-crude-palm-oil-excluded-from-indonesia-export-ban.md) | +1.2% | -1.7% |
| SBO | 2021-08-26 | [Indonesia's biofuel B40 plan expansion at risk on high palm oil prices - Fastmarkets](https://feedsoft.ai/events/45437-indonesia-s-biofuel-b40-plan-expansion-at-risk-on-high-palm-oil-prices.md) | -2.6% | -5.4% |
| SBO | 2022-08-25 | [SEA asks Indonesia to ensure stable policy for palm oil exports  - The HinduBusinessLine](https://feedsoft.ai/events/15800-sea-asks-indonesia-to-ensure-stable-policy-for-palm-oil-exports-the.md) | +1.7% | -4.1% |
| SBO | 2022-07-04 | [Palm oil extends losses as Indonesia mulls raising export quota](https://feedsoft.ai/events/4994-palm-oil-extends-losses-as-indonesia-mulls-raising-export-quota.md) | -4.8% | -6.1% |

## Sources

- fastmarkets.com: https://www.fastmarkets.com/insights/crude-palm-oil-prices-dive-to-six-month-low/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.