# Indonesia launches B30 biodiesel to cut costs, boost palm oil

> Indonesia launched a biodiesel blend containing 30% palm-based fuel on Monday, December 23, 2019. Output is forecast to slow due to drought and haze from forest fires.

- Date: 2019-12-20 · published 2019-12-20T12:00:00.000Z
- Category: policy · region Indonesia · magnitude high
- Page: https://feedsoft.ai/events/8616-indonesia-launches-b30-biodiesel-to-cut-costs-boost-palm-oil
- Commodities: [Wheat (SRW)](https://feedsoft.ai/c/WHEAT.md), [Corn](https://feedsoft.ai/c/CORN.md), [Soybeans](https://feedsoft.ai/c/SOY.md), [Palm Oil](https://feedsoft.ai/c/PALMOIL.md), [Soybean Meal](https://feedsoft.ai/c/SBM.md), [Chicken](https://feedsoft.ai/c/CHICKEN.md)

## Why it matters

The B30 mandate adds a large new source of domestic palm oil demand at a time of falling output, which raises palm oil price expectations and reduces exports available to importers.

## Read by commodity

- SBM: bullish ▲
- SOY: bullish ▲
- CORN: bullish ▲
- WHEAT: bullish ▲
- CHICKEN: bullish ▲
- PALMOIL: bullish ▲

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| PALMOIL | 2020-01-02 | 5 | +10.9% | 3.8 | The B30 launch on Dec 23 increases domestic palm demand and, with drought and haze expected to slow output, tightens supply. |

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| WHEAT | 2019-01-10 | [Boost to palm oil prices as Indonesian export levies eased \| Analysis & Features \| The Grocer](https://feedsoft.ai/events/60983-boost-to-palm-oil-prices-as-indonesian-export-levies-eased-analysis-and.md) | -0.8% | +1.6% |
| WHEAT | 2022-02-10 | [Palm rises as Indonesia expands export permit requirements - Markets - Business Recorder](https://feedsoft.ai/events/15843-palm-rises-as-indonesia-expands-export-permit-requirements-markets-business.md) | +0.3% | +16.6% |
| WHEAT | 2020-04-16 | [Romania's wheat export ban triggers supply chain concerns in Asia/Middle East, boosts prices](https://feedsoft.ai/events/53537-romania-s-wheat-export-ban-triggers-supply-chain-concerns-in-asia-middle-east.md) | -1.8% | -2.2% |
| WHEAT | 2023-02-12 | [India likely to continue curbs on wheat, rice exports \| India News](https://feedsoft.ai/events/37311-india-likely-to-continue-curbs-on-wheat-rice-exports-india-news.md) | -3.2% | -9.2% |
| WHEAT | 2026-01-17 | [India lifts partial wheat export ban, allows 5 lakh tonnes of products - The HinduBusinessLine](https://feedsoft.ai/events/21006-india-lifts-partial-wheat-export-ban-allows-5-lakh-tonnes-of-products-the.md) | -0.0% | +3.2% |
| CORN | 2019-01-10 | [Boost to palm oil prices as Indonesian export levies eased \| Analysis & Features \| The Grocer](https://feedsoft.ai/events/60983-boost-to-palm-oil-prices-as-indonesian-export-levies-eased-analysis-and.md) | -1.4% | +0.2% |
| CORN | 2023-03-08 | [Indonesian palm oil exports, production to fall in 2023 - GAPKI](https://feedsoft.ai/events/15745-indonesian-palm-oil-exports-production-to-fall-in-2023-gapki.md) | -1.6% | -0.6% |
| CORN | 2017-08-14 | [Iowa leaders ask EPA to boost RFS biodiesel volume](https://feedsoft.ai/events/69336-iowa-leaders-ask-epa-to-boost-rfs-biodiesel-volume.md) | -2.0% | -4.4% |

## Sources

- en.mercopress.com: https://en.mercopress.com/2019/12/28/argentine-farmers-back-on-the-roads-protesting-export-duties
- meatmanagement.com: https://meatmanagement.com/news/global-poultry-outlook-2020/49852.article
- reuters.com: https://www.reuters.com/article/markets/currencies/indonesia-launches-b30-biodiesel-to-cut-costs-boost-palm-oil-idUSKBN1YR0D1/

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