Indonesia: Oilseeds and Products Update
Indonesia is experiencing a mild La Niña event, resulting in increased rainfall and pushing palm oil production back to normal levels. Palm oil consumption continues to be driven by Indonesia’s biodiesel blending mandate. Industry reports that 2017 biodiesel consumption may drop due to the cost of the blending subsidy, however Post will refrain from revising its estimate until more information is available. Soybean production continues to decline in 2017, as wet weather is expected to encourage farmers to plant more rice and corn.
