Implementation of higher biodiesel mandates in Indonesia, the world’s biggest palm oil producer, is likely to tighten supplies of the vegetable oil, a leading industry analyst said on Tuesday. Photo: Natt Boonyatecha/iStock/Getty Images

Higher biodiesel mandates in Indonesia to curb palm oil supplies, analyst says

Decrease in available palm oil would be ‘catastrophic’ for global consumers, analyst says

Implementation of higher biodiesel mandates in Indonesia, the world's biggest palm oil producer, is likely to tighten supplies of the vegetable oil, a leading industry analyst said on Tuesday. Indonesia currently has a mandatory 35 per cent blend of palm oil-based fuel in biodiesel and is seeking to ramp up to biodiesel containing 40 per cent palm oil to cut its energy imports.



Palm oil accounts for the largest percentage of vegetable oil consumed globally.

Agricultural sector is an oily business

Expert's Radar: From crude oil to the various edible oils, all are important factors to consider in agriculture

When eating a nice meal, plenty of different oils can come into play. Canola oil to fry the onions, olive oil for the salad, some butter for the bread, and even crude oil for the fuel that brought all those ingredients to the grocery store. This varied assortment all has an impact on marketing success.


ICE November 2023 canola with Bollinger bands (20,2) and May 2023 canola (black line). (Barchart)

ICE weekly outlook: New-crop November canola set to step back

StatCan not expected to sway futures much

MarketsFarm — There is presently little upside to new-crop November canola on ICE Futures, according to analyst Errol Anderson of ProMarket Communications in Calgary. Anderson pointed to losses in Malaysian palm oil and weakness in China’s soymeal market as weighing on ICE canola values, with more pressure coming out of South America. “The [soybean] production

File photo of fresh palm fruits and palm oil. (Slpu9945/iStock/Getty Images)

USDA’s Indonesia desk predicts increased palm oil production

An El Nino event could weigh on that outlook

MarketsFarm — Indonesia, the world’s largest producer of palm oil, is forecast to see a three per cent rise in production in 2023-24, according to the U.S. Department of Agriculture’s Foreign Agricultural Service post in Jakarta. The country’s USDA post anticipates 46 million tonnes of palm oil production, which would be up from 44.7 during