# Palm oil extends losses as Indonesia mulls raising export quota

> Malaysian palm oil futures fell for a second day after Indonesia said it is considering a larger export quota to reduce high domestic stocks. Indonesia is also weighing higher biodiesel blending mandates to support farm prices, and weaker soyoil and palm oil in Dalian added pressure.

- Date: 2022-07-04 · published 2022-07-04T12:00:00.000Z
- Category: policy · region Indonesia · magnitude medium
- Page: https://feedsoft.ai/events/4994-palm-oil-extends-losses-as-indonesia-mulls-raising-export-quota
- Commodities: [Palm Oil](https://feedsoft.ai/c/PALMOIL.md), [Soybean Oil](https://feedsoft.ai/c/SBO.md)

## Why it matters

A larger Indonesian export quota adds supply to global vegetable oils, but a possible biodiesel mandate increase would absorb palm output domestically and could limit the downside. Net, the policy signals point to weaker palm prices with some support from biofuel demand.

## Read by commodity

- SBO: bearish ▼
- PALMOIL: bearish ▼

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| PALMOIL | 2022-07-04 | 1 | -10.5% | -3.9 | Dated 2022-07-04 itself: palm futures extended losses as Indonesia mulled a larger export quota and higher stock-clearing, adding supply pressure, plus weaker Dalian oils. |
| PALMOIL | 2022-07-06 | 5 | -26.1% | -7.8 | Indonesia considering a larger export quota signals more supply reaching the market to cut high domestic stocks, pressuring prices early in the window. |
| PALMOIL | 2022-07-05 | 5 | -26.0% | -9.8 | Indonesia considering a larger export quota to cut domestic stocks raised the supply outlook and extended losses on July 4. |
| SBO | 2022-07-04 | 1 | -7.1% | -5.2 | On July 4 Malaysian palm fell for a second day as Indonesia weighed larger export quotas to cut high domestic stocks, with weaker Dalian soyoil and palm adding pressure; palm weakness spills into soyoil as a close substitute. |

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| PALMOIL | 2022-08-29 | [Indonesia extends zero export levy on palm oil - ANTARA News](https://feedsoft.ai/events/15795-indonesia-extends-zero-export-levy-on-palm-oil-antara-news.md) | -4.9% | -10.9% |
| PALMOIL | 2020-09-30 | [Indonesia resumes collecting palm oil export levies](https://feedsoft.ai/events/51006-indonesia-resumes-collecting-palm-oil-export-levies.md) | -2.4% | +1.7% |
| PALMOIL | 2022-10-07 | [Indonesia to extend export levy waiver on palm oil to year-end \| FEAG](https://feedsoft.ai/events/15782-indonesia-to-extend-export-levy-waiver-on-palm-oil-to-year-end-feag.md) | -1.3% | +14.9% |
| PALMOIL | 2022-08-24 | [UPDATE 1-Indonesia Extends Palm Oil Export Levy Waiver to Oct. 31 - Trade Minister](https://feedsoft.ai/events/15796-update-1-indonesia-extends-palm-oil-export-levy-waiver-to-oct-31-trade-minister.md) | -0.1% | -8.7% |
| 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 | 2022-08-29 | [Indonesia extends zero export levy on palm oil - ANTARA News](https://feedsoft.ai/events/15795-indonesia-extends-zero-export-levy-on-palm-oil-antara-news.md) | -0.3% | -5.7% |
| SBO | 2022-08-30 | [Palm Oil Rises After Indonesia Raises Export Tax, Biodiesel Use](https://feedsoft.ai/events/15797-palm-oil-rises-after-indonesia-raises-export-tax-biodiesel-use.md) | +0.7% | -9.6% |
| SBO | 2022-10-07 | [Indonesia to extend export levy waiver on palm oil to year-end \| FEAG](https://feedsoft.ai/events/15782-indonesia-to-extend-export-levy-waiver-on-palm-oil-to-year-end-feag.md) | +1.8% | +7.7% |

## Sources

- mettisglobal.news: https://mettisglobal.news/Palm-oil-extends-losses-as-Indonesia-mulls-raising-export-quota
- brecorder.com: https://www.brecorder.com/news/40184198

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