# Drewry - Maritime Research Opinions - Costlier palm oil could continue to fuel long-haul trade of soybean oil

> Drewry says palm oil has held a price premium over soybean oil for over eight months because of tight supply, which has increased India's soybean oil imports. Declining palm oil exports have reduced short-haul vegoil trade while boosting long-haul soybean oil routes. Palm output in Malaysia fell sharply after heavy rains and flooding, and Indonesia's rising biodiesel mandate is expected to keep palm prices volatile.

- Date: 2025-06-03 · published 2025-06-03T12:00:00.000Z
- Category: trade · region Global · magnitude low
- Page: https://feedsoft.ai/events/15556-drewry-maritime-research-opinions-costlier-palm-oil-could-continue-to-fuel-long
- Commodities: [Soybean Oil](https://feedsoft.ai/c/SBO.md), [Palm Oil](https://feedsoft.ai/c/PALMOIL.md), [Ocean Grain Freight](https://feedsoft.ai/c/OCEANFRT.md)

## Why it matters

Sustained substitution toward soybean oil supports soyoil demand and lengthens vegoil shipping routes, which supports ocean freight. Persistent palm price premiums keep vegoil prices elevated.

## Read by commodity

- SBO: bullish ▲
- PALMOIL: bullish ▲
- OCEANFRT: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| SBO | 2023-11-22 | [Global soybean oil prices continue to rise amid tight supply](https://feedsoft.ai/events/33253-global-soybean-oil-prices-continue-to-rise-amid-tight-supply.md) | -1.2% | -4.4% |
| SBO | 2026-07-28 | [Waste feedstock trade reroutes as US soybean oil biofuel demand keeps climbing - Fastmarkets](https://feedsoft.ai/events/18448-waste-feedstock-trade-reroutes-as-us-soybean-oil-biofuel-demand-keeps-climbing.md) | +1.2% | -2.4% |
| SBO | 2017-06-02 | [Soybean oil price set to rise in 2018 due to US biodiesel anti-dumping policy - Biofuels International Magazine](https://feedsoft.ai/events/70358-soybean-oil-price-set-to-rise-in-2018-due-to-us-biodiesel-anti-dumping-policy.md) | +1.9% | +3.7% |
| SBO | 2018-04-06 | [Short-Term Palm Boost After China Tariff on US Soybeans: Traders](https://feedsoft.ai/events/65607-short-term-palm-boost-after-china-tariff-on-us-soybeans-traders.md) | -0.5% | -3.8% |
| SBO | 2025-12-01 | [Indian buyers secure huge soy oil deal: Traders lock in over 150k tons/month from South America; here's why - The Times of India](https://feedsoft.ai/events/11266-indian-buyers-secure-huge-soy-oil-deal-traders-lock-in-over-150k-tons-month.md) | +2.4% | -3.0% |
| PALMOIL | 2023-11-22 | [Global soybean oil prices continue to rise amid tight supply](https://feedsoft.ai/events/33253-global-soybean-oil-prices-continue-to-rise-amid-tight-supply.md) | -0.5% | -2.9% |
| PALMOIL | 2018-07-10 | [Could EU-Indonesia free trade deal end palm oil conundrum? - Fern](https://feedsoft.ai/events/64065-could-eu-indonesia-free-trade-deal-end-palm-oil-conundrum-fern.md) | -3.0% | -4.0% |
| PALMOIL | 2017-06-02 | [Soybean oil price set to rise in 2018 due to US biodiesel anti-dumping policy - Biofuels International Magazine](https://feedsoft.ai/events/70358-soybean-oil-price-set-to-rise-in-2018-due-to-us-biodiesel-anti-dumping-policy.md) | -1.7% | -1.5% |

## Sources

- drewry.co.uk: https://www.drewry.co.uk/maritime-research-opinion-browser/maritime-research-opinions/costlier-palm-oil-could-continue-to-fuel-long-haul-trade-of-soybean-oil

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.