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CGS-CIMB Research says Indonesia's progressive export levy revision is negative for upstream Indonesian palm oil producers but slightly positive for downstream players. It expects Malaysian upstream producers to benefit.
The levy is linked to the CPO reference price and aims to rebuild the nearly empty CPO fund.
The analysis shows the levy shifts margins between upstream and downstream players and across borders. It suggests the policy will sustain the B30 mandate, which keeps palm oil demand firm.
research.sginvestors.ioSGinvestorsDec 7, 2020After 513 past neutral policy events, Palm Oil moved a median 0.0% over 5 sessions (50% higher; middle half -1.6% to +1.4%), and -0.1% 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.
