On June 21, the U.S. Environmental Protection Agency plans to increase the mandatory blending amount of biofuels in the United States from 2023 to 2025, but the increase in the amount of biodiesel blending is lower than industry expectations; the blending target of corn-based ethanol is lower than last December Originally proposed level.
From the perspective of market mentality, the overall performance of palm oil prices in the June market was weak. At the beginning of June, the fundamentals of palm oil did not change much, and the market’s bearish attitude became more bearish.
The increase in the amount of US biodiesel blended was lower than industry expectations. Affected by this news, many US soybean oil contracts fell by the intraday limit.
Crude palm oil futures on the Bursa Malaysia Derivatives Exchange (BMD) fell nearly 4%. The domestic palm oil 2309 contract dived down 3%.
On the whole, the basis price of palm oil has dropped, and the production and export situation of production areas should be observed in the later stage.
