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UOB Kay Hian reports that Indonesia's revised palm oil export levy regulation, dated June 25, takes effect in early July. The brokerage estimates upstream producers could gain 20-30% in net profit, while downstream margins may narrow.
The broker's view that upstream producers gain from the levy change reinforces the bullish case for palm oil supply economics, but it notes CPO price weakness limits the near-term effect.
research.sginvestors.ioSGinvestorsJun 30, 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.
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.
