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Malaysia will raise its palm-based biodiesel blend to B10 from B7 in phases starting December 1, becoming mandatory on February 1. Analysts warn that a slump in crude oil could threaten implementation.
A higher mandate adds domestic palm demand, which is supportive for prices, but a narrow palm-gasoil spread could cause the rollout to be delayed.
themalaysianreserve.comNov 27, 2018After 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 187 past neutral policy events, Crude Oil (WTI) moved a median -0.1% over 5 sessions (49% higher; middle half -4.0% to +3.5%), and +0.1% 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.
