# Palm oil re-emerging as ‘discount oil’, says USDA   - The HinduBusinessLine

> USDA's FAS report says palm oil is again trading at a discount to soybean oil, with the gap narrowing to about $200 a tonne by end-January. It expects that discount to persist given lower Argentine output and strong US biodiesel demand. Indonesia's B35 biodiesel mandate could reduce exportable palm supply and narrow the discount.

- Date: 2023-02-09 · published 2023-02-09T12:00:00.000Z
- Category: report · region Global · magnitude medium
- Page: https://feedsoft.ai/events/37422-palm-oil-re-emerging-as-discount-oil-says-usda-the-hindubusinessline
- Commodities: [Palm Oil](https://feedsoft.ai/c/PALMOIL.md), [Soybean Oil](https://feedsoft.ai/c/SBO.md)

## Why it matters

A persistent palm discount keeps palm oil competitive in feed and food markets, capping soybean oil gains. Indonesia's B35 mandate could tighten palm exports and lift palm prices later.

## Read by commodity

- SBO: bullish ▲
- PALMOIL: bearish ▼

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| PALMOIL | 2019-04-29 | [Malaysian palm oil output likely to be higher in 2019  - The HinduBusinessLine](https://feedsoft.ai/events/6147-malaysian-palm-oil-output-likely-to-be-higher-in-2019-the-hindubusinessline.md) | -7.8% | -7.9% |
| PALMOIL | 2017-10-04 | [Malaysia palm oil stocks seen rising to 19-month high - The Business Times](https://feedsoft.ai/events/5638-malaysia-palm-oil-stocks-seen-rising-to-19-month-high-the-business-times.md) | +0.9% | +2.8% |
| PALMOIL | 2017-03-27 | [Palm oil producers revise up palm oil production, stock data - Business - The Jakarta Post](https://feedsoft.ai/events/72111-palm-oil-producers-revise-up-palm-oil-production-stock-data-business-the.md) | -0.5% | -7.6% |
| PALMOIL | 2021-02-18 | [Malaysia's Sime Darby Plantation eyes palm oil output recovery, high prices - The Business Times](https://feedsoft.ai/events/48726-malaysia-s-sime-darby-plantation-eyes-palm-oil-output-recovery-high-prices-the.md) | -0.4% | +8.5% |
| PALMOIL | 2025-08-04 | [Palm oil reserves in Malaysia seen surging to 19-month high \| The Star](https://feedsoft.ai/events/12122-palm-oil-reserves-in-malaysia-seen-surging-to-19-month-high-the-star.md) | +1.2% | +4.7% |
| SBO | 2023-07-03 | [Palm oil ends more than 5pc higher on supply worries - Markets - Business Recorder](https://feedsoft.ai/events/6544-palm-oil-ends-more-than-5pc-higher-on-supply-worries-markets-business-recorder.md) | +6.2% | +2.3% |
| SBO | 2019-11-01 | [Malaysian palm oil production to drop slightly in 2020, pushing the price upward, says expert \| Malay Mail](https://feedsoft.ai/events/4290-malaysian-palm-oil-production-to-drop-slightly-in-2020-pushing-the-price-upward.md) | +2.2% | -1.1% |
| SBO | 2020-08-12 | [Palm oil reverses early losses - Markets - Business Recorder](https://feedsoft.ai/events/51736-palm-oil-reverses-early-losses-markets-business-recorder.md) | +1.7% | +6.9% |

## Sources

- thehindubusinessline.com: https://www.thehindubusinessline.com/economy/agri-business/palm-oil-re-emerging-as-discount-oil-says-usda/article66489025.ece

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