Indonesia’s palm oil reserves fall thanks to higher biodiesel blend

In Indonesia, the country’s biodiesel blending mandate is eating away at its palm oil reserves, helping to support prices. For the sixth month in a row, stocks fell in June, falling more than 8% from May to 1.8 million metric tons. Bloomberg estimates only expected stocks to fall about 3%. Exports rose slightly by 1% but domestic consumption rose more than 6%. Neighboring Malaysia has seen a rebound in production which matched with ample soy oil supplies globally has been weighing on futures prices, but bullish figures from Indonesia could help curb the bearish trend.