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Maybank Kim Eng says Indonesia is still deliberating a revision to its export levy, which would be progressive and tied to CPO prices. The physical market in Indonesia has already priced in the proposed levy since early November.
The CPO fund that subsidises the B30 biodiesel mandate is nearly depleted by the wide palm-gasoil spread.
A higher levy would squeeze upstream plantation margins and could shift export flows, while the subsidy shortfall shows the cost of sustaining biodiesel demand.
research.sginvestors.ioSGinvestorsNov 21, 2020After 513 past neutral policy events, PALMOIL 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.
