Firm demand to offset larger supplies in palm oil markets

Firmer regional demand will underpin palm oil markets through 2026 despite higher production forecasts, expectations from industry participants across the supply chain showed. Indonesia, the world’s largest palm oil producer, is set to roll out a nationwide 50% biodiesel blending mandate in 2026, a move expected to absorb nearly half of its crude palm oil output and tighten exportable supplies Meanwhile, global demand is forecast to strengthen, with India and China increasing imports and seasonal consumption during Ramadan and Lunar New Year boosting buying. Palm oil remains a “structural winner over the next 5-10 years,” Dr Benjamin Hook, head of Agribusiness intelligence at UK-based commodity risk firm Global Data, said at an industry event in November. In physical markets at origins, the average price of crude palm oil FOB Indonesia was at $1,090/mt in 2025, according to data from Platts, part of S&P Global Energy. This was higher than its closest rival, Argentina soybean oil ...