Oilseeds

HGCA confirms that the price rises since 2006 can largely be attributed to increasing biodiesel demand (which in turn is boosting demand for Malaysian palm oil exports) and a growth in vegetable oil demand for human consumption, driven by growing affluence (as people earn more, they tend to fry more food rather than boil it). The reduction in 2005 prices can broadly and largely be attributed to ample supply but a relatively low demand.

Source: FAO