The discount to soyoil, as well as the suspension of the export levy, has speeded up exports of palm oil in Indonesia and stocks are falling at a faster pace than anticipated, said the Mumbai-based dealer.

Indonesia’s palm oil stockpile fell to 4.04 million tonnes by the end of August, compared to 5.91 million tonnes a month earlier and 6.69 million tonnes at end-June, according to estimates by the Indonesian Palm Oil Association (GAPKI).

Demand for palm oil-based biodiesel is also seen rising, GAPKI data showed. In January-August, Indonesia exported 206,000 tonnes of biodiesel, surpassing the 167,000 tonnes the country exported in 2021.

Supplies of sunflower oil, an alternative to palmoil, from the Black Sea region have been volatile after the Russia-Ukraine war, traders said.

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