Palm oil output stalls as biodiesel demand surges


FILE PHOTO: A worker collects palm oil fruit inside a palm oil factory in Sepang, outside Kuala Lumpur June 18, 2014. REUTERS/Samsul Said/File Photo

Prices of cooking oil could be buoyed for years by stagnating production and a biodiesel push in top producer Indonesia that are making traditionally cheap palm oil costlier, eliminating an advantage that also curbed prices of rival oils.

Used in everything from cakes and frying fats to cosmetics and cleaning products, palm oil makes up more than half of global vegetable-oil shipments and is especially popular among consumers in emerging markets, led by India.

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