A surge in the price of Malaysian palm oil futures could see an increase in biodiesel production.

Recent rises in the price of crude based on the proposed US automaker industry bailout have seen the cost of palm oil rise in tandem, which could make biodiesel output more profitable.

At 11:45 am in Kuala Lumpur, the palm oil shipment set for January delivery was up 3.1 per cent on the Malaysia Derivatives Exchange to approximately $450 per tonne.

Alvin Tai, an analyst with OSK Research in Kuala Lumpur, was quoted by Bloomberg as saying: "Although agriculture commodities have decoupled from crude oil's downward move, a rise in crude oil price could still turn out to have positive effects on soybean and palm oil due to the rising biodiesel margin."

In other news, the supplements manufacturer Naturex recently announced that it received two major organic certifications for its facility in France.


© Adfero Ltd

More Essential News