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European Parliament members voted to end subsidies for crop-based biofuels, effective 2020. Campaigners argue the change will not stop deforestation because food-crop biofuels remain eligible and palm oil's substitutes, such as soy, would still be needed.
Removing palm oil from EU biofuel support reduces demand for palm oil, while the remaining mandate could push buyers toward other vegetable oils such as soybean oil. The net effect is bearish for palm and supportive for competing oils.
dw.comDave KeatingJan 23, 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.
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.
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.
