The end of cheap palm oil? Output stalls as biodiesel demand surges
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 09 2025
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Source: Reuters
Impact of Biodiesel on Palm Oil Prices: Indonesia's increased use of palm oil for biodiesel production is driving up prices, with crude palm oil now commanding a premium over soybean oil, complicating inflation control in palm oil-reliant nations.
Production Challenges and Future Outlook: Stagnating palm oil production due to aging plantations, labor shortages, and environmental concerns is expected to lead to periodic shortages and higher prices, affecting billions of consumers globally.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
