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Indonesia may further raise palm oil export levies to fund its biodiesel programme, a senior Finance Ministry official said on August 19. The levy is used to cover the cost gap between palm-based biodiesel and fossil diesel, which has widened as crude prices fell this year.
The government has not yet disclosed details of the plan.
Higher levies would raise the cost of Indonesian palm oil exports and could support palm and vegetable oil prices, while weak crude keeps biodiesel economics stretched.
brecorder.comReutersAug 19, 2020After 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.
After 842 past bullish policy events, Soybean Oil moved a median +0.2% over 5 sessions (52% higher; middle half -1.6% to +2.1%), and -0.5% over 20.
After 187 past neutral policy events, Crude Oil (WTI) moved a median -0.1% over 5 sessions (49% higher; middle half -4.0% to +3.5%), 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.
