# End of cheap palm oil? Malaysia, Indonesia face supply crunch as biodiesel demand surges

> Malaysia and Indonesia face a palm oil supply crunch as biodiesel demand rises. Palm oil makes up more than half of global vegetable oil shipments.

- Date: 2025-03-10 · published 2025-03-10T12:00:00.000Z
- Category: policy · region Global · magnitude medium
- Page: https://feedsoft.ai/events/15577-end-of-cheap-palm-oil-malaysia-indonesia-face-supply-crunch-as-biodiesel-demand
- Commodities: [Palm Oil](https://feedsoft.ai/c/PALMOIL.md), [Soybean Oil](https://feedsoft.ai/c/SBO.md)

## Why it matters

Rising biodiesel use absorbs palm oil that would otherwise reach food and feed markets, supporting vegetable oil prices.

## Read by commodity

- SBO: bullish ▲
- PALMOIL: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| PALMOIL | 2025-03-09 | [The end of cheap palm oil? Output stalls as biodiesel demand surges](https://feedsoft.ai/events/15574-the-end-of-cheap-palm-oil-output-stalls-as-biodiesel-demand-surges.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 | 2025-07-25 | [Indonesia’s B50 Biodiesel Tightens Palm Oil Supply](https://feedsoft.ai/events/15546-indonesia-s-b50-biodiesel-tightens-palm-oil-supply.md) | -0.5% | +4.7% |
| PALMOIL | 2024-10-09 | [Higher biodiesel mandates in Indonesia to curb palm oil supplies, analyst says](https://feedsoft.ai/events/7766-higher-biodiesel-mandates-in-indonesia-to-curb-palm-oil-supplies-analyst-says.md) | -0.0% | +10.4% |
| 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 | 2025-03-09 | [The end of cheap palm oil? Output stalls as biodiesel demand surges](https://feedsoft.ai/events/15574-the-end-of-cheap-palm-oil-output-stalls-as-biodiesel-demand-surges.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 | 2024-10-09 | [Higher biodiesel mandates in Indonesia to curb palm oil supplies, analyst says](https://feedsoft.ai/events/7766-higher-biodiesel-mandates-in-indonesia-to-curb-palm-oil-supplies-analyst-says.md) | -2.5% | +7.7% |

## Sources

- malaymail.com: https://www.malaymail.com/news/money/2025/03/11/end-of-cheap-palm-oil-malaysia-indonesia-face-supply-crunch-as-biodiesel-demand-surges/169137

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