Indonesia’s July palm oil stocks at 5-year low amid higher biodiesel demand, low output

Published 2024년 9월 26일

Tridge summary

Indonesia's palm oil stocks dropped by 10.82% in July to a five-year low of 2.51 million metric tons due to higher domestic biodiesel demand and reduced production, according to industry data. This decline could support Malaysian futures trading near their highest level in 2-1/2 months. Domestic consumption increased by 2.17% in the first seven months of the year, driven by the B35 biodiesel blending mandate. Although palm oil shipments fell by 33.3% in July, production is expected to improve in August. The current stock levels are lower than market expectations, indicating effective supply management by Indonesia.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

Indonesia’s palm oil stocks fell 10.82% in July from the month before to a five-year low of 2.51 million metric tons, as domestic demand for biodiesel increased and production fell, data from a leading industry body showed on Wednesday. Falling stocks in Indonesia, the world’s biggest producer and consumer of the tropical oil, could support benchmark Malaysian futures FCPOc3 trading near their highest level in 2-1/2 months. “Food sector consumed 5.76 million tons, 5.18% lower compared to last year. While biodiesel use (was) at 6.44 million tons, or 10.84% higher compared to the previous year,” Indonesian palm oil association GAPKI said in a statement. Indonesia’s domestic consumption in the first seven months of this year increased 2.17% to 13.51 million tons, driven by higher biodiesel blending as the country fully implemented 35% mandatory palm-based biodiesel blending known as B35. Palm oil shipments by Indonesia, the world’s biggest palm oil exporter, dropped 33.3% on a ...

Source: UkrAgroConsult