Julia Lambert
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Julia Lambert in WT Trader,

Good news for palm oil

Bloomberg reports that Indonesia and Malaysia, the world’s top palm oil producers, will accelerate biodiesel programs to boost consumption after prices tumbled last month to the lowest level in more than three years.

Indonesia will increase its biodiesel blend requirements to cut spending on imports, Susilo Siswoutomo, deputy energy minister, said yesterday. The government issued a regulation increasing required biodiesel content to 10 percent from 7.5 percent in diesel oil sold to industrial users and motorists.

Malaysia is gradually increasing the blend of palm oil in biodiesel and in petroleum diesel to 10 percent from 5 percent to reduce stockpiles. Inventories have declined 37 percent to 1.66 million tons in July from a record in December, according to data from the nation’s palm oil board.