# Rally in palm oil 'red hot, ' analyst says | The Star

> Veteran analyst Dorab Mistry said palm oil's rally will accelerate as biofuel demand rises while output falls. He suggested Malaysian benchmark futures could reach 2,700 ringgit per ton by March, about 40% above the July low. He pointed to Indonesia's B30 biodiesel program as the key driver.

- Date: 2019-11-01 · published 2019-11-01T12:00:00.000Z
- Category: policy · region Indonesia · magnitude medium
- Page: https://feedsoft.ai/events/4284-rally-in-palm-oil-red-hot-analyst-says-the-star
- Commodities: [Palm Oil](https://feedsoft.ai/c/PALMOIL.md), [Soybean Oil](https://feedsoft.ai/c/SBO.md)

## Why it matters

Biodiesel mandates divert palm oil away from food and feed uses, tightening supply and supporting prices for palm and other vegetable oils. Higher vegetable oil prices raise the cost of oil-based feed ingredients.

## Read by commodity

- SBO: bullish ▲
- PALMOIL: bullish ▲

## Linked price moves

| Commodity | Date | Window | Change % | z-score | Why linked |
| --- | --- | --- | --- | --- | --- |
| PALMOIL | 2019-11-01 | 1 | +9.2% | 13.1 | Dorab Mistry's bullish call (2,700 ringgit by March, citing Indonesia's B30 biodiesel demand and falling output) was published on the move date and plausibly fueled buying sentiment. |
| PALMOIL | 2019-11-06 | 5 | +14.0% | 5.9 | Same Mistry forecast reported by The Star, reinforcing biodiesel-driven demand and supply-tightness sentiment. |
| PALMOIL | 2019-11-04 | 5 | +13.0% | 6.4 | Mistry's bullish call, built on Indonesia's B30 biodiesel demand and falling output, fed sentiment and speculative buying. |
| PALMOIL | 2019-10-31 | 1 | +9.2% | 15.4 | Dorab Mistry's bullish call (B30 biofuel demand rising, output falling, 2,700 ringgit target) fed rally sentiment, though published around the move's end date. |

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| PALMOIL | 2019-11-02 | [Rally in palm oil is ‘red hot’ on biofuel demand - Taipei Times](https://feedsoft.ai/events/4289-rally-in-palm-oil-is-red-hot-on-biofuel-demand-taipei-times.md) | +4.7% | +10.9% |
| 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 | 2022-12-19 | [Palm oil industry catalyst](https://feedsoft.ai/events/15770-palm-oil-industry-catalyst.md) | -0.6% | +1.5% |
| PALMOIL | 2023-07-25 | [Unpicking the Huge Rally in Oilseed Markets \| CZ app](https://feedsoft.ai/events/11933-unpicking-the-huge-rally-in-oilseed-markets-cz-app.md) | -0.8% | -3.6% |
| PALMOIL | 2019-11-03 | [Indonesia's Biofuel Plan Will Impact Global Palm Oil Price, Analysts Say](https://feedsoft.ai/events/4288-indonesia-s-biofuel-plan-will-impact-global-palm-oil-price-analysts-say.md) | +4.7% | +10.9% |
| SBO | 2019-11-02 | [Rally in palm oil is ‘red hot’ on biofuel demand - Taipei Times](https://feedsoft.ai/events/4289-rally-in-palm-oil-is-red-hot-on-biofuel-demand-taipei-times.md) | +1.5% | -3.4% |
| 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% |
| SBO | 2019-04-15 | [Palm oil is not a green fuel, says EU \| T&E](https://feedsoft.ai/events/59610-palm-oil-is-not-a-green-fuel-says-eu-t-and-e.md) | -0.9% | -9.0% |

## Sources

- thestar.com.my: https://www.thestar.com.my/business/business-news/2019/11/01/rally-in-palm-oil-039red-hot-039-analyst-says

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