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Indonesian officials say a palm oil fund subsidy of about $50 per ton could raise CPO prices over time by supporting biodiesel. The Indonesian Palm Oil Producers Association and the fund's director discussed biodiesel absorption, with 71% of collected funds distributed to subsidise biodiesel.
The program is targeted to expand toward 2020.
A government-funded biodiesel subsidy that expands domestic palm oil demand is a structural support for palm oil prices, though the effect is described as gradual.
en.infosawit.comInfoSAWIT EnglishJan 13, 2017After 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.
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.
