# Palm oil 101: Sought-after crop holds sway over oilseed trade - AgCanada

> 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.

- Date: 2019-12-31 · published 2019-12-31T12:00:00.000Z
- Category: policy · region Indonesia · magnitude medium
- Page: https://feedsoft.ai/events/5458-palm-oil-101-sought-after-crop-holds-sway-over-oilseed-trade-agcanada
- Commodities: [Palm Oil](https://feedsoft.ai/c/PALMOIL.md)

## Why it matters

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.

## Read by commodity

- PALMOIL: bullish ▲

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| PALMOIL | 2020-01-02 | 1 | +9.7% | 6.4 | 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. |
| PALMOIL | 2020-01-02 | 5 | +10.9% | 3.8 | 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. |

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| PALMOIL | 2019-11-01 | [Rally in palm oil 'red hot, ' analyst says \| The Star](https://feedsoft.ai/events/4284-rally-in-palm-oil-red-hot-analyst-says-the-star.md) | +12.8% | +16.7% |
| PALMOIL | 2021-08-27 | [Indonesia: Increased Export Tax on palm oil - Global Trade Alert](https://feedsoft.ai/events/45444-indonesia-increased-export-tax-on-palm-oil-global-trade-alert.md) | -1.4% | +1.9% |
| PALMOIL | 2021-06-21 | [Indonesia to cut crude palm oil export levy to $175/mt: sources](https://feedsoft.ai/events/46456-indonesia-to-cut-crude-palm-oil-export-levy-to-175-mt-sources.md) | +0.3% | +8.7% |
| PALMOIL | 2024-12-19 | [Indonesia to hike crude palm oil export levy to 10pct](https://feedsoft.ai/events/15595-indonesia-to-hike-crude-palm-oil-export-levy-to-10pct.md) | -0.1% | -11.2% |
| PALMOIL | 2017-01-27 | [Indonesia to set February crude palm oil export tax at $18 per tonne](https://feedsoft.ai/events/72868-indonesia-to-set-february-crude-palm-oil-export-tax-at-18-per-tonne.md) | -0.9% | -5.2% |

## Sources

- agcanada.com: https://www.agcanada.com/daily/palm-oil-101-sought-after-crop-holds-sway-over-oilseed-trade

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.