Why it is moving
Indonesia is the world's top producer and exporter of palm oil. Changes in its domestic consumption policies, particularly mandatory biofuel programs, are a key fundamental factor shaping the global supply-demand balance.
Main drivers
Indonesia's new biofuel policy diverts palm oil supply towards domestic consumption.
Evidence: The post reports that Indonesia's biofuel push, involving a new palm-diesel blend, will strain local producers and tighten global palm oil supplies by diverting exports.
Outlook for tightening global palm oil supply from export markets.
Evidence: The post reports that Indonesia's biofuel push, involving a new palm-diesel blend, will strain local producers and tighten global palm oil supplies by diverting exports.
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