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The Singapore Institute of International Affairs explains the European Parliament's April 2017 palm oil resolution, which proposes a single palm oil certification scheme and phasing out palm oil in EU biofuels by 2020. It notes the EU market is worth about S$8.3 billion and takes 17% of Indonesia's and 13% of Malaysia's palm oil exports.
If enforced, the phase-out of palm oil in EU biofuels and the certification rules would remove a meaningful export outlet for Indonesian and Malaysian palm oil, a bearish factor for palm oil prices and a bullish one for EU-grown vegetable oils such as rapeseed and soy oil.
siiaonline.orgSIIA Membership AdminMay 12, 2017After 400 past bearish policy events, PALMOIL 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, SBO 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.
