On Monday (18/06), President Trump ordered his trade representative to draft a new list of $200 billion worth of Chinese goods on which the U.S. could impose a 10 percent tariff. The move comes just three days after the president enacted an initial $50 billion in imports that would be taxed an additional 25 percent, which he said was punishment for the theft of intellectual property from U.S. companies, as well as the trade gap between the US and China.
Malaysia Palm Oil Export period 1 – 20 Jun was down 10.05% to 670,442 metric ton from its previous 745,309 metric ton.
FAO Vegetable Oil Price Index averaged 150.6 points in May, down by 4 points (2.6 percent) month-on-month, marking a fourth consecutive decline and a 27-month low. The slide mainly reflects weakening values of palm, soy and sunflower oils.
European Union Renewable Energy Directive (RED II)
The European Parliament was reached agreement on 14 June through the trilogue negotiations between the European Commission, the European Parliament and the Council of the EU (EU Member States). The new regulatory framework includes a binding renewable energy target for the EU of at least 32% by 2030, and a review clause by 2023 for an upward revision of the target. There is no specific or explicit reference to palm oil in this agreement. The outcome in no way constitutes a ban or even a restriction on the imports of palm oil or palm-oil based biofuels. The relevant provisions in the Directive only aim to regulate to what extent certain biofuels can be counted by EU Member States towards reaching their sustainable energy targets. The EU market remains open to palm oil imports. The EU is Indonesia's second largest export market for palm oil, and EU imports had increased significantly in 2017, by 28%.