Loading…
Palm oil futures are trading at three-year highs on rising biofuel demand and greater cooking oil use in India and China. Indonesia will raise its biodiesel blending rate from 20% to 30% at the start of January.
The Indonesian B30 mandate absorbs a large share of palm output for biodiesel, tightening global vegetable oil supply and supporting prices for oilseed markets, including canola.
agcanada.comAGCanadaDec 31, 2019After 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.
Indonesia's B30 biodiesel mandate starting in January and strong biofuel and cooking oil demand lift palm oil demand and prices, which fits a sharp rally at the start of the new year.
Indonesia's move to B30 raises domestic biodiesel demand for palm oil, and strong India and China cooking oil demand pushed futures to three-year highs.
