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Malaysian palm oil futures closed lower on Thursday after a sell-off triggered by news that Indonesia's B40 biodiesel mandate was delayed. The benchmark contract fell 2.52% to 4,336 ringgit a ton, and Malaysian December exports fell 2.5% per AmSpec and 7.8% per Intertek.
The delay postpones an expected rise in domestic biodiesel use, reducing near-term palm oil demand and pressuring prices. Weaker Malaysian export figures add to the bearish demand signal.
translate.google.comAvijit DasJan 2, 2025
brecorder.comReutersJan 2, 2025After 400 past bearish policy events, PALMOIL moved a median -0.0% over 5 sessions (49% higher; middle half -1.3% to +1.1%), and +0.2% over 20.
After 842 past bullish policy events, SBO moved a median +0.2% over 5 sessions (52% higher; middle half -1.6% to +2.1%), and -0.5% 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.
Sell-off on news that Indonesia's B40 biodiesel mandate was delayed removed expected domestic demand, driving a 2.5% drop on Jan 2 within the window.
Same B40-delay sell-off plus weak Malaysian December exports (-2.5% to -7.8%) signaled softer demand and pressured prices.
Same B40 delay sell-off combined with weak December Malaysian exports (-2.5% to -7.8%) pushed futures lower.
