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CGS-CIMB research says Indonesia cut the biodiesel conversion cost assumption by 20% to $80 per tonne and raised palm export levies by $5 from June 1. The analysts judge these measures sufficient to fund B30 if the price gap stays near current levels.
Secure funding for B30 keeps domestic biodiesel demand for palm oil firm, but a higher export levy raises the cost of Indonesian palm exports, which is a mixed signal for palm prices.
research.sginvestors.ioSGinvestorsJun 8, 2020After 513 past neutral policy events, Palm Oil 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.
