USDA – Oilseeds. World Markets and Trade, Jan 2025

The report by USDA "Oilseeds. World Markets and Trade, Jan 2025" analyzes recent developments in the global oilseeds market, focusing on Indonesia's biodiesel policy changes. On January 3, 2025, Indonesia increased its biodiesel blend rate from 35 to 40 percent, expected to boost domestic palm oil consumption by 1.0 million metric tons, impacting available export volumes. The policy aims to enhance biodiesel use for public services, subsidized by palm oil export levies. Despite a record production year for Indonesian palm oil, exports are projected near decade lows due to increased domestic consumption. This shift has elevated palm oil prices, prompting global importers to seek lower-priced alternatives like soybean oil from the United States.