# CPO futures as hedging mechanism following planned EU palm oil ban | The ASEAN Post

> 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.

- Date: 2016-12-29 · published 2016-12-29T12:00:00.000Z
- Category: policy · region EU · magnitude medium
- Page: https://feedsoft.ai/events/73575-cpo-futures-as-hedging-mechanism-following-planned-eu-palm-oil-ban-the-asean
- Commodities: [Palm Oil](https://feedsoft.ai/c/PALMOIL.md)

## Why it matters

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.

## Read by commodity

- PALMOIL: bearish ▼

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| PALMOIL | 2016-12-29 | [EU palm oil ban sows bitter seeds \| The ASEAN Post](https://feedsoft.ai/events/73585-eu-palm-oil-ban-sows-bitter-seeds-the-asean-post.md) | -1.2% | -0.1% |
| PALMOIL | 2019-03-22 | [EU bases planned palm oil restriction on 2015 data - National - The Jakarta Post](https://feedsoft.ai/events/60111-eu-bases-planned-palm-oil-restriction-on-2015-data-national-the-jakarta-post.md) | -0.6% | +0.7% |
| PALMOIL | 2019-09-30 | [EU palm oil ban more than environmental issue - Asia Times](https://feedsoft.ai/events/57133-eu-palm-oil-ban-more-than-environmental-issue-asia-times.md) | -2.1% | +2.5% |
| PALMOIL | 2020-03-02 | [The Palm Oil Conundrum in EU-ASEAN Relations – The Diplomat](https://feedsoft.ai/events/54014-the-palm-oil-conundrum-in-eu-asean-relations-the-diplomat.md) | -7.2% | -13.4% |
| PALMOIL | 2019-06-14 | [EU biofuel ruling hits prices of palm and coconut oil \| Analysis & Features \| The Grocer](https://feedsoft.ai/events/58690-eu-biofuel-ruling-hits-prices-of-palm-and-coconut-oil-analysis-and-features-the.md) | +0.5% | -2.1% |

## Sources

- theaseanpost.com: https://theaseanpost.com/article/cpo-futures-hedging-mechanism-following-planned-eu-palm-oil-ban

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.