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Fitch Ratings says Indonesia's revised progressive export levy on palm oil, in effect from 10 December 2020, should lift biodiesel funding and support crude palm oil prices. Fitch expects the Malaysian benchmark to average above its USD560/t 2021 assumption, though it flags the risk of reverting to the old structure.
A higher levy funds Indonesia's biodiesel programme, which absorbs palm oil domestically and tightens exportable supply. This supports palm oil prices, though policy reversal risk remains.
sawitindonesia.comRedaksiJan 4, 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.
