# Indonesia’s palm oil export curbs upend global edible oil markets - Markets - Business Recorder

> Indonesia announced a 20% mandatory domestic sales obligation for palm producers to cool local cooking oil prices. Malaysian palm futures rose to a record 5,639 ringgit per tonne. Buyers in India, China and Africa are expected to switch to cheaper soyaoil and sunflower oil.

- Date: 2022-01-30 · published 2022-01-30T12:00:00.000Z
- Category: policy · region Indonesia · magnitude high
- Page: https://feedsoft.ai/events/8091-indonesia-s-palm-oil-export-curbs-upend-global-edible-oil-markets-markets
- Commodities: [Soybeans](https://feedsoft.ai/c/SOY.md), [Palm Oil](https://feedsoft.ai/c/PALMOIL.md), [Soybean Oil](https://feedsoft.ai/c/SBO.md)

## Why it matters

The export curb removes palm supply from world markets and makes it the priciest major edible oil. Substitution toward soy and sunflower oil shifts demand and lifts prices for those oils.

## Read by commodity

- SBO: bullish ▲
- SOY: bullish ▲
- PALMOIL: bullish ▲

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| PALMOIL | 2022-02-01 | 1 | +6.4% | 4.0 | The 20% domestic sales obligation and record futures were reported just before the move, but the date is a few days earlier, so it is mostly a precursor. |

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| SOY | 2022-04-28 | [Soy oil soars to record as Indonesia expands palm export ban](https://feedsoft.ai/events/41929-soy-oil-soars-to-record-as-indonesia-expands-palm-export-ban.md) | -3.3% | -2.6% |
| SOY | 2024-06-07 | [Corn, soy futures rise on new Brazilian tax rule - Markets - Business Recorder](https://feedsoft.ai/events/6150-corn-soy-futures-rise-on-new-brazilian-tax-rule-markets-business-recorder.md) | -0.9% | -2.1% |
| SOY | 2021-01-05 | [Chicago soybeans near 6-1/2-year high on LatAm supply concerns - Markets - Business Recorder](https://feedsoft.ai/events/11547-chicago-soybeans-near-6-1-2-year-high-on-latam-supply-concerns-markets-business.md) | +4.4% | +2.9% |
| SOY | 2021-08-20 | [Lower tax, higher tech help corn displace soya as Argentina's top crop - Markets - Business Recorder](https://feedsoft.ai/events/45421-lower-tax-higher-tech-help-corn-displace-soya-as-argentina-s-top-crop-markets.md) | +3.4% | -2.9% |
| SOY | 2019-12-20 | [Indonesia launches B30 biodiesel to cut costs, boost palm oil](https://feedsoft.ai/events/8616-indonesia-launches-b30-biodiesel-to-cut-costs-boost-palm-oil.md) | +0.5% | -0.9% |
| PALMOIL | 2023-11-02 | [Palm oil rises by more than 2% as Indonesia extends export curbs - Markets - Business Recorder](https://feedsoft.ai/events/33278-palm-oil-rises-by-more-than-2-as-indonesia-extends-export-curbs-markets.md) | +4.1% | +6.2% |
| PALMOIL | 2023-10-12 | [Palm oil rises on demand, Indonesia’s move to keep exports flexible - Markets - Business Recorder](https://feedsoft.ai/events/33743-palm-oil-rises-on-demand-indonesia-s-move-to-keep-exports-flexible-markets.md) | +3.6% | +6.2% |
| PALMOIL | 2021-08-27 | [Indonesia Sept crude palm oil export reference price, export tax set higher - Markets - Business Recorder](https://feedsoft.ai/events/45440-indonesia-sept-crude-palm-oil-export-reference-price-export-tax-set-higher.md) | -1.4% | +1.9% |

## Sources

- asiafinancial.com: https://www.asiafinancial.com/indonesias-palm-oil-export-curbs-roil-global-market
- brecorder.com: https://www.brecorder.com/news/40151177

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