The increase in palm oil production in Indonesia puts pressure on prices of oilseeds

2019-03-20 12:11:26
The increase in palm oil production in Indonesia puts pressure on prices of oilseeds

Due to increased export demand and domestic consumption from the biodiesel industry, in yesterday's report USDA forecast palm oil production in Indonesia in the new Mr has increased by 4% to 43 million tonnes, 1.5 million tonnes higher than the figure recorded 2018/19 Mr. The plantation of Mature trees will increase to 11.75 million hectares.

 

the Increasing consumption of palm oil in Indonesia will occur due to the increase in domestic industrial demand, mostly from bio-fuel companies.

 

To reduce the account deficit and fuel imports since September the country has a domestic mandate to mix diesel fuel with 20% biodiesel, which is almost all produced from palm oil, which is the main products of the country.

 

next year the mandate will increase to 30%, and it will also consider the possibility of using palm oil for electricity production and as raw materials for garoogian vegetable oil (HVO).

 

palm oil Exports will increase from 29 million tonnes in 2018/19 MG to 30 million tonnes in 2019/20 MG, due to increased demand from China, Pakistan and Africa, which offset the decline in exports to India, which on crude palm oil sets 40% duty.

 

Indonesia consumes 13 million tonnes of crude palm oil, half of which goes to the production of biodiesel.

 

the increase in the production and export of palm oil will put pressure on the price of Ukrainian sunflower oil in the markets of India and China, which would prefer cheaper oil.

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