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Crude palm oil prices have declined in recent weeks after European Parliament votes to reduce palm oil-based biofuels. The planned EU ban on palm oil in motor fuels from 2021 is weighing on prices, along with weaker China demand and higher Indian import tariffs.
Market participants are considering futures as a hedge.
The EU is a major consumer of palm oil, mostly for biofuels, so losing that demand reduces export demand for Indonesian and Malaysian palm oil. Lower palm prices can also reduce the cost of vegetable oil in feed.
theaseanpost.comThe ASEAN Post TeamDec 29, 2016After 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.
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.
