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The European Commission published its delegated act identifying high indirect land use change (ILUC)-risk feedstocks in the EU Official Journal on 21 May. The act supplements the recast Renewable Energy Directive (REDII) and classifies palm oil from large plantations as high ILUC-risk, capping it at 2019 consumption levels.
Palm oil from large plantations facing a consumption cap in EU biofuels reduces a key export outlet, which is bearish for palm oil and supportive for rival vegetable oils such as soybean oil and rapeseed.
ofimagazine.comMay 30, 2019After 400 past bearish policy events, Palm Oil moved a median -0.0% over 5 sessions (49% higher; middle half -1.3% to +1.1%), and +0.2% 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.
