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Indonesia plans to cut diesel imports by mandating that all diesel, including for power plants and railways, contain biodiesel, typically palm oil based. Officials estimate the policy will save about $6 billion per year in oil import costs.
A large biodiesel mandate would absorb significant palm oil volumes domestically, tightening exportable supply and supporting palm oil prices.
reuters.comFransiska NangoyAug 7, 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 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.
After 175 past neutral policy events, Crude Oil (Brent) moved a median -0.9% over 5 sessions (45% higher; middle half -3.6% to +3.0%), and +0.7% 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.
