# Commodities 2021: Tight production, demand expectations to support Asian palm oil prices

> S&P Global expected Asian palm oil prices to stay firm into 2021 on supply concerns and possible demand recovery tied to COVID-19 vaccine progress. It cited lower first-quarter 2021 production forecasts and Indonesia's decision to keep the B30 biodiesel mandate. Competing vegetable oils were also seen supporting prices.

- Date: 2020-12-31 · published 2020-12-31T12:00:00.000Z
- Category: market · region Asia · magnitude low
- Page: https://feedsoft.ai/events/4997-commodities-2021-tight-production-demand-expectations-to-support-asian-palm-oil
- Commodities: [Palm Oil](https://feedsoft.ai/c/PALMOIL.md), [Soybean Oil](https://feedsoft.ai/c/SBO.md)

## Why it matters

Firm palm prices and biodiesel mandates tighten vegetable oil supply, supporting soybean oil and palm-linked feed costs.

## Read by commodity

- SBO: bullish ▲
- PALMOIL: bullish ▲

## Sources

- spglobal.com: https://www.spglobal.com/commodity-insights/en/news-research/latest-news/agriculture/123120-commodities-2021-tight-production-demand-expectations-to-support-asian-palm-oil-prices

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