Indonesia palm oil export curbs plan to hit world vegetable oil supplies
RBD Palm Oil
Indonesia
Published Jan 17, 2023
Tridge summary
A move by top palm oil exporter Indonesia to restrict shipments and boost domestic biodiesel consumption is set to squeeze global vegetable oil supplies already undercut by lower output in Southeast Asia and Latin America. Edible oil buyers, including price-sensitive consumers in South Asia and Africa, will bear the brunt of the supply-side constraints that […]
Original content
A move by top palm oil exporter Indonesia to restrict shipments and boost domestic biodiesel consumption is set to squeeze global vegetable oil supplies already undercut by lower output in Southeast Asia and Latin America. Edible oil buyers, including price-sensitive consumers in South Asia and Africa, will bear the brunt of the supply-side constraints that come just as demand is forecast to climb, with China easing Covid-19 controls and India boosting purchases. Indonesia’s new restrictions are another challenge for food-importing countries hurting from last year’s red-hot inflation, which pushed prices of key staples wheat, corn and soybeans to all-time or multi-year highs. “The implementation of (the) B35 mandate in Indonesia in 2023 definitely changes (the) global palm oil SND (supply and demand) situation,” said Oscar Tjakra, a senior analyst at food and agribusiness research at Rabobank. “I’m now expecting global palm oil SND will be in a slight deficit.” Indonesia’s B35 ...
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