Palm oil price forecast and production outlook 2026

yields, its closest rival. Navigating the market requires an understanding of how government policies, shrinking agricultural land, and sustainability pressures will shape the landscape in 2026. The narrative around palm oil production in 2026 features two diverging paths. Indonesia is set for a recovery, with crude palm oil (CPO) production projected to increase by 1.5–2.0 million tonnes from 2024 levels. The official Indonesia Palm Oil Association or better known as GAPKI reported an 11% or 4 million tonnes of production increase in the first nine months of 2025 versus the same period in 2025 to 39.60 million tonnes, setting the stage for a bountiful crop year. However, this growth is set to face serious risk in 2026 following increased uncertainty over land titles, resulting in governments’ backed land-seizure program. The government has up to date seized 3.3 million hectares, of which 1.5 million hectares of oil palm planted area transferred to the state-owned PT Agrinas, with ...