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Indonesia relaxed its palm oil and derivative export levy rules effective immediately after prices fell. Exporters pay no levy when prices are below $570 per tonne, $10-25 between $570 and $619, and $20-50 above $619.
The rules replace the earlier announced thresholds.
Removing levies at low prices lowers Indonesian export costs and makes its palm oil more competitive, adding supply to a market already oversupplied. This is bearish for palm oil and vegetable oil prices, with some support for demand if buyers switch to cheaper palm.
thestar.com.myThe Star OnlineDec 4, 2018After 400 past bearish policy events, PALMOIL moved a median -0.0% over 5 sessions (49% higher; middle half -1.3% to +1.1%), and +0.2% over 20.
After 351 past bearish policy events, SBO moved a median -0.0% over 5 sessions (49% higher; middle half -1.7% to +1.8%), 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.
