Palm oil imports to hit 5-year low on price and production gains

A recovery in palm oil production and reduced imports by price-sensitive consumers are expected to push prices lower and narrow the premium for the tropical oil over its main rivals. Palm oil futures, which jumped 20% to a two-year high in 2024, are already losing ground as major importers such as India switch to cheaper alternatives such as soybean and sunflower oils. Palm oil has traded at an unusual premium to other oils in recent months due to flood-related supply disruptions in top producers Indonesia and Malaysia. But palm oil stockpiles could start to rise in coming months as demand falls, industry officials and analysts said at a conference in Kuala Lumpur this week. Weakening demand, rising production High palm oil prices are prompting buyers to switch to soybean oil, which could lead to stockpiling once production picks up, according to Thomas Mielke, chief executive of the Hamburg-based forecasting firm. India’s palm oil imports in 2024/25, which ends in October ...