
Colombia's proposed Economic Rescue Law would eliminate the reduced 5% VAT rate, moving items such as roasted coffee, refined sugar, chocolate and crude soybean, palm, sunflower, cottonseed, rapeseed and corn oils to the 19% general rate. Fedecafe has voiced strong concern about the proposal.
A higher tax on crude vegetable oils would reduce Colombian domestic demand and could weigh on edible oil import demand. The effect on feed-grade oils is likely small, but the proposal is still a bearish signal for regional vegetable oil demand.
After 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.