UPDATE 1-U.S. sets antidumping duties on Argentine, Indonesian biodiesel

(Adds background, comments from biodiesel industry group)

WASHINGTON, Oct 23 (Reuters) - The U.S. Commerce Department on Monday set preliminary antidumping duties on imports of biodiesel from Argentina and Indonesia, after an initial finding that the products were being sold under market value in the United States.

The department set antidumping duties ranging from 54.36 percent to 70.05 percent on soy-based biodiesel from Argentina, and 50.71 percent on palm oil biodiesel from Indonesia, it said in a statement.

Commerce Secretary Wilbur Ross said in the statement that the government of Argentina has asked for negotiations, and that the department is working on possible suspension agreements.

U.S. producers of biodiesel petitioned their government earlier this year, saying foreign imports came into the country below market value, harming domestic makers.

Industry group the National Biodiesel Board praised the move, saying it had joined the petition to "address a flood of subsidized and dumped imports from Argentina and Indonesia that has resulted in market share losses and depressed prices for domestic producers."

Carbio, the Argentine biodiesel industry group, declined to comment.

In 2016, imports of biodiesel from Argentina and Indonesia were valued at an estimated $1.2 billion and $268 million, respectively, according to the department.

Argentina in 2016 accounted for two-thirds of U.S. biodiesel imports, totaling 916 million gallons (3.5 billion liters), according to U.S. government data. (Reporting by Michael Hirtzer and Eric Walsh, additional reporting by Caroline Stauffer in Buenos Aires; Editing by Mohammad Zargham and Rosalba O'Brien)