Crude oil surge likely to support palm prices

TA Research says Industry sources indicate that buyers across Asia have accelerated purchases to mitigate potential shipping disruptions and hedge against further price increases, providing near-term support to palm oil prices,

PETALING JAYA: Analysts expect the rising crude oil prices and higher freight costs amid current tensions in the Middle East could improve biodiesel economics and strengthen demand for palm oil as a key feedstock.

In a note to clients, TA Research said higher diesel prices would enhance the attractiveness of biodiesel blending, particularly in Indonesia under its B40 programme, while the recent surge in energy prices would further incentivise greater biodiesel consumption.