VEGETABLE OIL MARKET UPDATE – INDONESIA BIO DIESEL IMPACT.

Indonesia (world’s largest palm oil producer) continues to drive global vegetable oil prices through its biodiesel policy.
🔹 Biodiesel Mandate Status • B35 → ongoing
* B40 → target phase
* B50 → policy roadmap announced, timing awaited
🔹 Key Data • Indonesia palm oil production: ~48–50 MMT
* Biodiesel veg oil demand: ~13.2 MMT (B40)
* Potential B50 demand: 15–16 MMT
* Each step higher removes 2–3 MMT from export supply
🔹 Global Consumption Context • China: ~50 MMT
* India: ~26 MMT
* EU: ~24 MMT
* Indonesia biodiesel alone: 13.2 MMT (bigger than many countries)
🔹 Export Impact • Indonesian CPO exports trending down (~30 → 25 MMT)
* More palm oil diverted to domestic fuel
* Global veg oil availability tightening
🔹 Price & Economics • Palm oil prices remain structurally supported
* POGO spread elevated → higher subsidy need
* Low crude oil prices delaying B50 clarity
🎯 Market Result ✅ Medium–long term bullish for palm oil
⚠️ Short-term volatility due to crude & subsidies
📈 Any B50 confirmation = strong upside trigger
🧠 Trader Takeaway
Indonesia biodiesel demand has become a permanent price driver for the global veg oil market.
— Market Intelligence