# EU new palm oil rule seen to be setting up clash with Malaysia, Indonesia

> EU negotiators agreed to phase out palm oil use in transport fuels by 2030, with use capped at 2019 levels until 2023. The move sets up a dispute with Malaysia and Indonesia, the two producers that account for nearly 90% of global palm output.

- Date: 2018-06-14 · published 2018-06-14T12:00:00.000Z
- Category: policy · region EU · magnitude high
- Page: https://feedsoft.ai/events/64410-eu-new-palm-oil-rule-seen-to-be-setting-up-clash-with-malaysia-indonesia
- Commodities: [Palm Oil](https://feedsoft.ai/c/PALMOIL.md), [Soybean Oil](https://feedsoft.ai/c/SBO.md)

## Why it matters

A scheduled end to palm biofuel demand in the EU reduces long-term palm demand and shifts biodiesel feedstock toward rapeseed and soyoil.

## Read by commodity

- SBO: bullish ▲
- PALMOIL: bearish ▼

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| SBO | 2018-06-14 | 1 | -2.1% | -3.1 | The same EU palm oil phase-out news and the trade clash with Malaysia and Indonesia add to vegetable oil market uncertainty on the day, with a limited direct link to soybean oil. |

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| PALMOIL | 2019-04-09 | [Indonesia, Malaysia send letter protesting EU palm oil curbs](https://feedsoft.ai/events/59471-indonesia-malaysia-send-letter-protesting-eu-palm-oil-curbs.md) | -1.9% | -8.4% |
| PALMOIL | 2019-08-27 | [Palm oil: Indonesia and Malaysia push back as EU clamps down - Nikkei Asia](https://feedsoft.ai/events/57462-palm-oil-indonesia-and-malaysia-push-back-as-eu-clamps-down-nikkei-asia.md) | -1.2% | +0.3% |
| PALMOIL | 2025-08-20 | [Malaysia and Indonesia move to be labeled “low-risk” for palm oil.](https://feedsoft.ai/events/23345-malaysia-and-indonesia-move-to-be-labeled-low-risk-for-palm-oil.md) | -0.2% | +1.7% |
| PALMOIL | 2024-09-23 | [RHB: Indonesia's tax changes could weaken Malaysia's palm oil edge](https://feedsoft.ai/events/15618-rhb-indonesia-s-tax-changes-could-weaken-malaysia-s-palm-oil-edge.md) | +1.1% | +9.0% |
| PALMOIL | 2017-04-12 | [Indonesia, Malaysia launch efforts to counter EU palm oil resolution](https://feedsoft.ai/events/71386-indonesia-malaysia-launch-efforts-to-counter-eu-palm-oil-resolution.md) | -2.5% | +1.6% |
| SBO | 2025-05-14 | [Indonesian palm oil exports set to fall with biofuel mandate - Nikkei Asia](https://feedsoft.ai/events/24754-indonesian-palm-oil-exports-set-to-fall-with-biofuel-mandate-nikkei-asia.md) | -0.6% | -4.3% |
| SBO | 2018-01-18 | [Indonesia, Malaysia condemn European move to limit palm oil use \| Reuters](https://feedsoft.ai/events/67074-indonesia-malaysia-condemn-european-move-to-limit-palm-oil-use-reuters.md) | +0.5% | -2.2% |
| SBO | 2026-06-30 | [Indonesia's biodiesel push, El Niño risks to tighten palm oil supply](https://feedsoft.ai/events/15463-indonesia-s-biodiesel-push-el-nino-risks-to-tighten-palm-oil-supply.md) | +1.3% | +1.8% |

## Sources

- thestar.com.my: https://www.thestar.com.my/business/business-news/2018/06/15/eu-to-phase-out-palm-oil-from-transport-fuel-by-2030

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.