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Analysis-The end of cheap palm oil? Output stalls as biodiesel demand surges

Reuters
Summary
Nutrition label

78% Informative

Palm oil prices could be buoyed up for years by stagnating production and biodiesel push in top producer Indonesia .

Palm oil makes up more than half of global vegetable oil shipments and is popular among consumers in emerging markets.

Indonesia increased the mandatory mix of palm oil in biodiesel to 40% this year , and is studying moving to 50% in 2026 , as well as a 3% blend for jet fuel.

Higher palm oil prices could ripple out to boost those of rival oils as demand shifts.

"We see huge demand increase happening for palm oil and with limited land, we feel, there would be demand and supply imbalance," said Harish Harlani .

"As buyers switch to soy and sunflower, their prices shoot up too," said Sanjeev Asthana , CEO of India 's Patanjali Foods Ltd.

VR Score

90

Informative language

97

Neutral language

44

Article tone

formal

Language

English

Language complexity

54

Offensive language

not offensive

Hate speech

not hateful

Attention-grabbing headline

not detected

Known propaganda techniques

not detected

Time-value

short-lived

External references

no external sources

Source diversity

no sources

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