Malaysian biodiesel output up 50 percent as crude palm price drops

In Malaysia, biodiesel production is expected to increase to 143,000 tonnes this year, up 50 percent over 2007 as falling crude palm oil prices revive Southeast Asian production. Exports for the first eight months of the year reached 101,000 tonnes, up from 95,000 last year, according to the Malaysian Palm Board. The break even cost for crude palm oil, based on a $1,000 per tonne biodiesel price, is estimated in Malaysia at $900 per tonne, and CPO prices have now dropped below $700. The Palm Board warned that winter sales may ease, due to the superior cold-weather performance of canola oil compared to to palm oil biodiesel.

Free Subscription to the Daily Biofuels Digest e-newsletter

Related Stories

Malaysian crude palm oil prices soar to record $876 per ton; tracking petroleum oil increase

In Malaysia, crude palm oil futures reached a record $876 per ton, tracking the increase in oil prices to more than $96 per barrel. The Malaysian government delayed implementation of the Malaysian ...

Malaysian biodiesel industry rebounds as crude palm oil prices tumble 35 percent; 15 percent drop forecast for 2009

In Malaysia, Aseambankers is forecasting the average crude palm oil price for FY08 and FY09 at $889 and $741 per tonne respectively, which should generate substantial increased activity in biodiesel p...

Malaysian crude palm oil prices tumble as biodiesel demand evaporates in wake of 80 percent price hikes

Crude palm oil prices have begun to fall in Malaysia as biodiesel demand drops off, due to 80 percent price increases over the past 18 months. April crude palm oil prices fell to $944 per tonne on ...

Malaysian crude palm oil reaches record $956 per tonne; crude oil surpasses $100 per barrel

Malaysian crude palm oil rose to an all-time high of $956 per tonne, tracking rises in oil and soybean prices. Oil reached a record $100 per barrel today....

Malaysian analysts say crude palm oil prices to stay in $440-$500 per tonne price range in 2009

In Malaysia, research analysts said that they expect the country to carry a palm oil inventory of 540 million gallons, as crude palm oil production remains high and demand remains sort. The analysts s...

Palm oil futures hit record $901 per ton as oil price hikes have ripple effect

Palm oil futures rose to a record $901 per ton yesterday on the Malaysian Derivatives Exchange. This translates to a producer cost of $3.15 per gallon, or about 40 cents higher than the current US cos...