# The end of cheap palm oil? Output stalls as biodiesel demand surges

> Analyst Thomas Mielke expects palm oil production growth to average about 1.3 million tons a year this decade. Labour shortages, ageing plantations, Ganoderma fungus and reluctance to replant are constraining yields in Malaysia and Indonesia.

- Date: 2025-03-09 · published 2025-03-09T12:00:00.000Z
- Category: policy · region Global · magnitude medium
- Page: https://feedsoft.ai/events/15574-the-end-of-cheap-palm-oil-output-stalls-as-biodiesel-demand-surges
- Commodities: [Palm Oil](https://feedsoft.ai/c/PALMOIL.md), [Soybean Oil](https://feedsoft.ai/c/SBO.md)

## Why it matters

Slowing output growth while biodiesel demand rises tightens the palm oil balance sheet and supports prices over the medium term.

## Read by commodity

- SBO: bullish ▲
- PALMOIL: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| PALMOIL | 2025-03-10 | [End of cheap palm oil? Malaysia, Indonesia face supply crunch as biodiesel demand surges](https://feedsoft.ai/events/15577-end-of-cheap-palm-oil-malaysia-indonesia-face-supply-crunch-as-biodiesel-demand.md) | -1.1% | -5.0% |
| PALMOIL | 2016-11-25 | [Palm oil demand from Indonesia biodiesel sector to surge by 2020](https://feedsoft.ai/events/73756-palm-oil-demand-from-indonesia-biodiesel-sector-to-surge-by-2020.md) | +3.8% | +5.0% |
| PALMOIL | 2020-09-18 | [Palm Oil News - Who Gets the Advantages of B30 (Biodiesel 30)](https://feedsoft.ai/events/51011-palm-oil-news-who-gets-the-advantages-of-b30-biodiesel-30.md) | -1.9% | -1.2% |
| PALMOIL | 2021-01-05 | [Higher blending mandate to help offset EU’s lower palm oil demand, says biodiesel association – The European Times](https://feedsoft.ai/events/49041-higher-blending-mandate-to-help-offset-eu-s-lower-palm-oil-demand-says.md) | +1.3% | -10.0% |
| PALMOIL | 2026-04-22 | [Malaysia's palm oil-based biodiesel push to add 300,000 tpy in demand](https://feedsoft.ai/events/15480-malaysia-s-palm-oil-based-biodiesel-push-to-add-300-000-tpy-in-demand.md) | -0.0% | -0.2% |
| SBO | 2025-03-10 | [End of cheap palm oil? Malaysia, Indonesia face supply crunch as biodiesel demand surges](https://feedsoft.ai/events/15577-end-of-cheap-palm-oil-malaysia-indonesia-face-supply-crunch-as-biodiesel-demand.md) | -1.9% | +6.5% |
| SBO | 2016-11-25 | [Palm oil demand from Indonesia biodiesel sector to surge by 2020](https://feedsoft.ai/events/73756-palm-oil-demand-from-indonesia-biodiesel-sector-to-surge-by-2020.md) | +2.1% | -5.6% |
| SBO | 2018-07-24 | [France's Avril Raises Biodiesel Output On Higher Oil Prices, Demand](https://feedsoft.ai/events/64125-france-s-avril-raises-biodiesel-output-on-higher-oil-prices-demand.md) | +1.2% | +2.0% |

## Sources

- reuters.com: https://www.reuters.com/markets/commodities/end-cheap-palm-oil-output-stalls-biodiesel-demand-surges-2025-03-09/

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