Palm Oil Entering the Biodiesel Market

KUALA LUMPUR (Dow Jones)–Palm oil prices will continue to trade at a hefty discount to rival soyoil because of unfavorable import duties imposed by India, one of the world’s largest edible oil buyers, said a top official at Malaysia’s palm oil promotion and marketing body.
Bio-diesel To Boost Palm Oil Demand
Meanwhile, Lee said he expects bio-diesel to be one of the fastest growing markets for palm oil exports in 2005 and subsequent years.

A surge in crude oil prices since late 2004 has prompted governments worldwide to boost production of alternative fuel sources.

Increasing calls globally for cleaner-burning fuel to safeguard the environment is also likely to boost usage of edible oils for energy.