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The European Parliament voted to phase out palm oil in EU biofuels by 2021 and cap crop-based biofuels at member states' 2017 consumption levels, with no more than 7% of transport fuels until 2030. Countries below 2% crop-based biofuel use may raise their cap to 2%.
A cap on food-based biofuel use removes a key source of vegetable oil demand and directly targets palm oil. This is bearish for palm oil and soybean oil prices and signals a long-term shift away from crop-based biodiesel feedstocks.
euractiv.comSarantis MichalopoulosJan 17, 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 351 past bearish policy events, Soybean Oil moved a median -0.0% over 5 sessions (49% higher; middle half -1.7% to +1.8%), 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.
