# Palm oil rally sparked by growing biodiesel use in Malaysia and Indonesia

> USDA's Economic Research Service says palm oil prices rose to a 13-month high in October 2019 on rising biodiesel use and slowing output. USDA cut its 2019/20 Malaysian production estimate to 21 million tonnes after below-average rainfall.

- Date: 2020-01-17 · published 2020-01-17T12:00:00.000Z
- Category: report · region Malaysia · magnitude medium
- Page: https://feedsoft.ai/events/54957-palm-oil-rally-sparked-by-growing-biodiesel-use-in-malaysia-and-indonesia
- Commodities: [Palm Oil](https://feedsoft.ai/c/PALMOIL.md), [Soybean Oil](https://feedsoft.ai/c/SBO.md)

## Why it matters

Tighter supply from weather-hit yields and expanding biodiesel mandates in Malaysia and Indonesia support palm oil prices and can pull demand from other vegetable oils.

## Read by commodity

- SBO: bullish ▲
- PALMOIL: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| PALMOIL | 2023-02-05 | [Indonesia’s crude palm oil exports to drop further as more palm oil goes to biodiesel - Opinion](https://feedsoft.ai/events/15758-indonesia-s-crude-palm-oil-exports-to-drop-further-as-more-palm-oil-goes-to.md) | +0.8% | +5.9% |
| PALMOIL | 2019-11-07 | [Total palm oil output of Indonesia, Malaysia seen flat in 2020 - analyst Mistry](https://feedsoft.ai/events/55947-total-palm-oil-output-of-indonesia-malaysia-seen-flat-in-2020-analyst-mistry.md) | +0.6% | +9.2% |
| PALMOIL | 2021-02-04 | [Indonesia's palm oil-powered 'green diesel' fuels threat to forests](https://feedsoft.ai/events/48507-indonesia-s-palm-oil-powered-green-diesel-fuels-threat-to-forests.md) | +8.2% | +14.4% |
| PALMOIL | 2023-03-27 | [Malaysia: Boost in demand for palm oil seen on supply recovery](https://feedsoft.ai/events/36955-malaysia-boost-in-demand-for-palm-oil-seen-on-supply-recovery.md) | +1.1% | -1.9% |
| PALMOIL | 2021-03-25 | [Indonesia’s end-2021 palm oil stocks seen plunging - Markets - Business Recorder](https://feedsoft.ai/events/47981-indonesia-s-end-2021-palm-oil-stocks-seen-plunging-markets-business-recorder.md) | -1.3% | -1.8% |
| SBO | 2023-02-05 | [Indonesia’s crude palm oil exports to drop further as more palm oil goes to biodiesel - Opinion](https://feedsoft.ai/events/15758-indonesia-s-crude-palm-oil-exports-to-drop-further-as-more-palm-oil-goes-to.md) | -1.5% | -0.6% |
| SBO | 2023-03-27 | [Malaysia: Boost in demand for palm oil seen on supply recovery](https://feedsoft.ai/events/36955-malaysia-boost-in-demand-for-palm-oil-seen-on-supply-recovery.md) | -0.6% | -4.1% |
| SBO | 2021-02-04 | [WASDE forecasts rise in use of soyabean oil in biodiesel](https://feedsoft.ai/events/48508-wasde-forecasts-rise-in-use-of-soyabean-oil-in-biodiesel.md) | +1.9% | +10.1% |

## Sources

- ers.usda.gov: https://www.ers.usda.gov/data-products/charts-of-note/chart-detail?chartId=95652

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