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Palm methyl ester exports from Malaysia and Indonesia are expected to stay weak in the first half of 2021. The palm oil to gasoil spread is at $400-500 per tonne, well above its typical range, which blocks exports to Europe.
Indonesia's B30 mandate and Malaysia's planned B20 rollout are expected to lift domestic biodiesel demand.
High feedstock palm prices keep biodiesel uneconomic for export, which shifts palm supply toward domestic use and keeps palm oil prices firm for feed buyers.
spglobal.comJan 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.
