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The RSIS commentary explains that the EU Commission's Delegated Act of 13 March 2019 classifies palm oil as an unsustainable biofuel feedstock, which would phase palm-based biofuels out of the EU by 2030. Indonesia has responded with WTO litigation threats and lobbying campaigns.
Phasing palm biofuel out of the EU's largest market removes a source of demand and pressures palm oil prices, while the dispute adds trade uncertainty.
rsis.edu.sgJefferson NgMay 10, 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.
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.
