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Malaysian and Indonesian crude palm oil stocks fell through 2019 as domestic consumption rose on the B20 mandate, and prices rallied to MR 2,684/mt by December 4 from MR 2,065/mt at the start of the year. Indonesia's B30 biodiesel mandate is expected in January 2020, and producers were preparing to use most capacity domestically with few exports planned.
A B30 mandate would absorb more palm oil domestically, tightening exportable supply while stalled CPO output keeps stocks low. This supports palm oil prices and competes with soybean oil for export demand.
advancedbiofuelsusa.infoDec 27, 2019After 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.
Falling stocks, B20 absorption and the expected B30 mandate with few exports planned tightened export availability and underpinned the price rally.
