# -Shrinking global palm oil supplies, strong biodiesel demand to boost prices

> Analysts expect global palm oil supplies to tighten as production growth slows and Indonesia is likely to increase compulsory biodiesel blending from B35 toward B40. A raise to B50 was also discussed as a possibility for after 2025. Malaysia's biodiesel output could also rise if its 20% mandate expands.

- Date: 2024-03-06 · published 2024-03-06T12:00:00.000Z
- Category: market · region Global · magnitude medium
- Page: https://feedsoft.ai/events/15661-shrinking-global-palm-oil-supplies-strong-biodiesel-demand-to-boost-prices
- Commodities: [Palm Oil](https://feedsoft.ai/c/PALMOIL.md), [Soybean Oil](https://feedsoft.ai/c/SBO.md)

## Why it matters

Slowing palm production combined with rising biodiesel mandates reduces supply available for food and export markets, which supports palm oil prices. Oilseed meal and oil markets may also tighten.

## Read by commodity

- SBO: bullish ▲
- PALMOIL: bullish ▲

## Sources

- reuters.com: https://www.reuters.com/markets/commodities/shrinking-global-palm-oil-supplies-strong-biodiesel-demand-boost-prices-2024-03-06/

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