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A Maybank Kim Eng research note says Indonesia signed a decree exempting palm oil export levies when CPO prices are below $570 per tonne. The note says the change benefits upstream planters and Malaysian exports and may help reduce Malaysia's high stockpile.
It maintains a neutral sector rating.
The levy exemption is expected to boost Indonesian and Malaysian palm exports and help clear inventories, which is bearish for palm oil prices. The analyst view reinforces that the policy shift favors supply expansion in the near term.
research.sginvestors.ioSGinvestorsDec 6, 2018After 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.
