# Palm Oil's Biofuel Goals Just Got a Whole Lot Harder to Meet | Financial Post

> Palm oil faces a tough path to replacing fossil fuel as gasoil has slumped more than 45% this year, widening palm's premium over diesel to the widest since 2011. The premium exceeded $400 a ton on Sept. 18 for the first time in over nine years.

- Date: 2020-09-29 · published 2020-09-29T12:00:00.000Z
- Category: macro · region Global · magnitude medium
- Page: https://feedsoft.ai/events/51199-palm-oil-s-biofuel-goals-just-got-a-whole-lot-harder-to-meet-financial-post
- Commodities: [Palm Oil](https://feedsoft.ai/c/PALMOIL.md), [ULSD / Diesel](https://feedsoft.ai/c/DIESEL.md), [Soybean Oil](https://feedsoft.ai/c/SBO.md)

## Why it matters

A wide palm-gasoil spread makes palm biodiesel expensive, pressuring Indonesia's biofuel fund and risking backsliding on B30 and other biodiesel mandates, which would reduce palm demand and weigh on palm prices.

## Read by commodity

- SBO: bearish ▼
- DIESEL: bearish ▼
- PALMOIL: bearish ▼

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| PALMOIL | 2020-02-28 | [Asian palm oil market drops 5.7% on coronavirus fears \| S&P Global](https://feedsoft.ai/events/5814-asian-palm-oil-market-drops-5-7-on-coronavirus-fears-s-and-p-global.md) | -4.9% | -14.0% |
| PALMOIL | 2022-07-01 | [Palm oil falls 4% on recession fears, higher supply outlook - Markets - Business Recorder](https://feedsoft.ai/events/6225-palm-oil-falls-4-on-recession-fears-higher-supply-outlook-markets-business.md) | -24.3% | -29.0% |
| PALMOIL | 2026-02-04 | [Palm oil prices on roller coaster amid bullish outlook but soft fundamentals \| Mysteel](https://feedsoft.ai/events/4665-palm-oil-prices-on-roller-coaster-amid-bullish-outlook-but-soft-fundamentals.md) | -1.6% | -0.6% |
| PALMOIL | 2020-02-25 | [Crude palm oil futures hit 4-month low on uncertain market sentiment \| Malay Mail](https://feedsoft.ai/events/6573-crude-palm-oil-futures-hit-4-month-low-on-uncertain-market-sentiment-malay-mail.md) | -13.3% | -15.6% |
| PALMOIL | 2022-09-28 | [Palm hits lowest in over 1-1/2 years as recession fears dent demand - Markets - Business Recorder](https://feedsoft.ai/events/39674-palm-hits-lowest-in-over-1-1-2-years-as-recession-fears-dent-demand-markets.md) | -4.7% | +1.1% |
| DIESEL | 2020-09-30 | [Europe's Oil Refineries Struggling to Cope With Diesel Glut \| Financial Post](https://feedsoft.ai/events/51273-europe-s-oil-refineries-struggling-to-cope-with-diesel-glut-financial-post.md) | +6.8% | +4.4% |
| DIESEL | 2020-09-09 | [Second wave of floating storage triggered by ailing oil market \| Financial Post](https://feedsoft.ai/events/10507-second-wave-of-floating-storage-triggered-by-ailing-oil-market-financial-post.md) | +2.6% | +10.7% |
| DIESEL | 2022-06-07 | [Brazilian real hits 2-week low, Chilean peso slips before rate move \| Financial Post](https://feedsoft.ai/events/41152-brazilian-real-hits-2-week-low-chilean-peso-slips-before-rate-move-financial.md) | -2.1% | -21.6% |

## Sources

- financialpost.com: https://financialpost.com/pmn/business-pmn/palm-oils-biofuel-goals-just-got-a-whole-lot-harder-to-achieve

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