Palm oil consumption forecast to increase

and a gradual normalisation in global production of edible oils. The ratings firm said other factors include demand for biodiesel and a weaker US dollar, underpinned a higher average CPO price in 2025 compared to 2024 – supported by elevated prices of competing vegetable oils. It noted demand dynamics are supportive with the US Department of Agriculture forecasting global palm oil consumption to grow but at slightly below total production. Major destination markets like India are expected to maintain purchases, supported by CPO’s price competitiveness against other vegetable oils. The Food and Agriculture Organization of the United Nations is projecting a 2.1% increase in the utilisation of oils and fats in 2026, mainly for biofuels. Indonesia’s move to increase its biodiesel blend rate to 40% (B40) from 35% (B35) helped CPO prices in 2025. MARC Ratings stated a 10% increase in the biodiesel blend rate could raise annual palm oil consumption by above four million tonnes or around ...