Malaysia will not implement its cut in the crude palm oil export tax and scrapping of the tax-free quota until January 1, a delay that industry experts called disappointing. Palm oil stocks hit a record 2.48 million tonnes in September, and analysts expect higher October stockpiles.
December CPO futures fell as much as 5.7% intraday before ending Friday down 0.91% at RM2,500 per tonne.
Record Malaysian stocks combined with a deferred export tax cut keep near-term supply pressure on palm oil, and traders expect range-bound prices with profit-taking. Indonesia's response to the measure is still uncertain.
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.
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.