# Increases in palm oil diesel might impact veg oil prices | The Western Producer

> Indonesia plans to raise the palm oil share of its biodiesel from 35% to 40% at the start of 2025, and its new president has discussed a 50% blend. The Indonesian palm oil producers association warned the increase must be phased in cautiously to avoid spiking palm oil prices. It estimates B40 would cut palm oil exports by two million tonnes a year.

- Date: 2024-10-29 · published 2024-10-29T12:00:00.000Z
- Category: policy · region Indonesia · magnitude medium
- Page: https://feedsoft.ai/events/27957-increases-in-palm-oil-diesel-might-impact-veg-oil-prices-the-western-producer
- Commodities: [Palm Oil](https://feedsoft.ai/c/PALMOIL.md), [Soybean Oil](https://feedsoft.ai/c/SBO.md)

## Why it matters

Diverting palm oil into biodiesel reduces export availability and should support global vegetable oil prices, which in turn supports canola values. Price effects are uncertain because other factors also drive vegetable oil markets.

## Read by commodity

- SBO: bullish ▲
- PALMOIL: bullish ▲

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| PALMOIL | 2024-11-04 | 5 | +9.9% | 4.2 | Indonesia's planned B40 biodiesel increase would cut palm exports and tighten supply, adding to bullish sentiment. |

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| PALMOIL | 2019-10-31 | [Biofuel forecast may prop up prices \| The Western Producer](https://feedsoft.ai/events/56664-biofuel-forecast-may-prop-up-prices-the-western-producer.md) | +14.0% | +16.4% |
| PALMOIL | 2017-01-13 | [Palm Oil News - Biodiesel Policy: One Factor to Increase CPO Price](https://feedsoft.ai/events/72873-palm-oil-news-biodiesel-policy-one-factor-to-increase-cpo-price.md) | +0.1% | -0.8% |
| PALMOIL | 2025-03-19 | [Palm prices end higher due to Indonesia's increased levy and weak Malaysian production](https://feedsoft.ai/events/15576-palm-prices-end-higher-due-to-indonesia-s-increased-levy-and-weak-malaysian.md) | -0.5% | -6.3% |
| PALMOIL | 2022-11-09 | [Indonesia to Boost Biodiesel Production With Palm Oil Considering High Crude Oil Prices](https://feedsoft.ai/events/15778-indonesia-to-boost-biodiesel-production-with-palm-oil-considering-high-crude.md) | -2.9% | -1.6% |
| PALMOIL | 2024-03-25 | [Biodiesel to drive 2025 palm oil prices: IPOC \| Latest Market News](https://feedsoft.ai/events/15660-biodiesel-to-drive-2025-palm-oil-prices-ipoc-latest-market-news.md) | +0.1% | -1.8% |
| SBO | 2020-01-09 | [Argentine soybeans facing tax increases \| The Western Producer](https://feedsoft.ai/events/54929-argentine-soybeans-facing-tax-increases-the-western-producer.md) | -2.8% | -8.8% |
| SBO | 2019-10-31 | [Biofuel forecast may prop up prices \| The Western Producer](https://feedsoft.ai/events/56664-biofuel-forecast-may-prop-up-prices-the-western-producer.md) | +2.5% | -2.0% |
| SBO | 2023-05-25 | [Clean energy decision could soon impact oilseed markets \| The Western Producer](https://feedsoft.ai/events/15306-clean-energy-decision-could-soon-impact-oilseed-markets-the-western-producer.md) | -1.5% | +17.5% |

## Sources

- producer.com: https://www.producer.com/markets/increases-in-palm-oil-diesel-might-impact-veg-oil-prices/

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