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Indonesia cut its crude palm oil export levy ceiling by $80/mt effective July 2, lowering the export duty to $116/mt from $183/mt. The next day India reduced its CPO import duty to 30.25% from 35.75% and lifted restrictions on refined palm oil and olein imports.
Lower export levies and India's cheaper duty should lift palm oil demand and ease oversupply concerns, which supports palm oil prices into the second half. Lower palm oil prices also make it a cheaper competitor to soybean oil in feed and food use.
spglobal.comAnu DasJul 1, 2021After 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 196 past neutral policy events, Soybean Oil 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.
