Palm oil takes off amid biodiesel prospects, strong demand

As Asian economies brace for more price shocks linked to imported commodities, palm oil is worth watching.

This crucial food ingredient has seen prices outpace other vegetable oils since the war in the Middle East began. Some analysts say major buyers China and India might be front-loading their orders in case shipping costs rise further.

There’s also the case of palm oil-derived biodiesel, which is being promoted in Indonesia and Malaysia to boost energy security. A long-term Strait of Hormuz crisis would reshape the economics of such alternative fuels.