The EU approved the gradual ban on the use of palm oil

the European Commission has banned the use of palm oil in the production of biofuels from 2030. The corresponding decision announced March 13 at the official site.

the Main reason for this decision was the desire to stop tropical deforestation to accommodate palm plantations in Indonesia and Malaysia are the main producers of palm oil.

According to the decision, the use of palm oil as raw materials for biofuel production will gradually decrease from 2023, and 2030 from her will completely refuse.

there are exceptions that will allow partial use of palm oil in the production of biofuels in the case when it is obtained through the increase in the yield of palms. Also allows you to use the oil that produce from small farmers, because this environment does not undergo significant damage.

This decision continues to put pressure on palm oil prices, which since the beginning of March fell by 3.7% to 511,25 $/ton, while oil prices in this period increased by 4.3% to 67.8 $/barrel.

the Falling prices for palm oil presses on adjacent markets, soybean and sunflower oil. Soybean oil in Chicago 656,3 is trading at $/t, and sunflower oil at the level 660-665 $/t FOB.