Palm oil is at a new high on food sector demand, according to my colleague Anu Agrual, writing from Singapore on ICIS news.
Disclosure (I work for ICIS: About ICIS)
The key message from the story is that in the far east Palm oil is more highly valued as food than as a fuel and that it will take government action to impose quotas before it can be used as fuel. Most Asian palm oil boidiesel plants are closed, he says.
The high price of palm oil, and the rising prices of alternatives means that the viability of any biofuel processes that are based on palm oil will be looking increasingly poor. It also means that there will be increased pressure to grow more palm oil, which could have repercussions for biodiversity and for the people who farm near on in the forests.