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MALAYSIA BIODIESEL MANDATE WILL MARGINALLY IMPACT CPO DEMAND

03.26.10

The impact of Malaysia's biodiesel mandate on palm oil demand for 2011 will be negligible as it will only be introduced in stages within central Peninsular Malaysia, according to OSK Research, Bernama reports.

Assuming that central Peninsular Malaysia uses 50% of the country's total diesel consumption of 10 mt, maximum demand for palm oil in biodiesel in 2011 will amount to just 146k mt if implemented all at one go rather than in stages, it said in a research note on Friday.

Hence, the impact to palm oil prices should be positive but likely to be insignificant, the research firm said.



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