Indonesia: Oilseeds and Products Update
Palm oil production declines are expected to arrive starting in December 2015 and extend throughout the next six to nine months. Although initial reports indicate some production declines in December and January, growers and analysts both report that initial declines are on par with seasonal drops typically experienced in December and January. Based on this data, Post maintains its original estimate of 33 million tons for 2015/16. Indonesia’s palm oil levy and biodiesel subsidy has transformed Indonesian biodiesel consumption. With revenues expected to reach 1.2 billion dollars in 2016 and over 300 million dollars in 2015 revenue rolled over into the new year, Post expects Indonesian biodiesel consumption to reach 3.4 million MT. 2015/16 soybean production is revised downward slightly, based on the expectation that weather more favorable to corn production will enable farmers to plant the more lucrative crop.
