Loading…
Indonesian President Joko Widodo launched the mandatory B30 biodiesel program on December 23, a blend of 30% biodiesel with 70% diesel. The mandate takes effect nationwide on January 1, 2020, making Indonesia the first country to require B30.
The government cites energy security, emissions and the success of the earlier B20 rollout.
B30 sharply increases domestic palm oil use for biodiesel, leaving less palm oil for export and tightening global vegetable oil supply. This supports palm oil and soybean oil prices.
esdm.go.idDec 23, 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.
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.
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.
