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Indonesia tightened its palm oil export rules from January 1, 2023, cutting the allowed export-to-domestic sales ratio from eight times to six times. The move is meant to secure domestic cooking oil supply ahead of Ramadan and Eid al-Fitr in March and April.
Malaysian palm oil futures rose to their highest since December 1 after the announcement.
Indonesia's largest palm oil export restriction tightens global vegetable oil supply, pushing up palm and soyoil prices and the cost of oil-based feed inputs.
thejakartapost.comBernadette ChristinaJan 2, 2023After 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.
After 842 past bullish policy events, Soybean Oil moved a median +0.2% over 5 sessions (52% higher; middle half -1.6% to +2.1%), and -0.5% 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.
Indonesia's tighter export-to-domestic sales ratio effective Jan 1 curbs supply from the top exporter, lifting palm futures to their highest since early December.
