Indonesia plans to expand its domestic biodiesel mandate from 40% to 50% by the second half of next year, Bloomberg reports, which is expected to slash palm oil supplies available for export. “The initiative may drive up global vegetable oil prices, shift flows of vegetable oils and stoke food inflation if buyers are forced to seek costlier alternatives,” said Bloomberg. The price of palm oil may climb to as high as 5,000 ringgit per MT in the January-June period if the Indonesian government pushes ahead with the B50 program, said Eddy Martono, chairman of the Indonesian Palm Oil Association. The price of palm oil — used in everything from chocolate to cosmetics — has fluctuated in recent months as investors weigh swelling stockpiles and uncertain demand, said Bloomberg.
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A bull market in palm oil in 2026?
Indonesia plans to expand its domestic biodiesel mandate.
(Farm Journal)
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