This week’s episode delivers an in-depth review of the global palm oil market.

• Malaysia's palm oil sector continues to grapple with volatility. Prices have been buoyed by strength in the global vegetable oil complex but face downward pressure from weak export data and a stronger ringgit. October production was strong, yet rising inventories and sluggish early November exports have limited price momentum. The Malaysian government stresses the need for competitive export strategies and consistent policy frameworks amid market uncertainty.
• Indonesia experienced strong production and export growth throughout 2025. Elevated global prices boosted export revenues between January and August. However, government crackdowns on illegal plantations spotlight regulatory challenges that may hinder future production and replanting efforts. The country’s B50 biodiesel mandate has significantly increased domestic consumption, supporting internal demand but potentially limiting exports. This policy is expected to shift consumption and trade dynamics substantially.
• India's palm oil imports are being reshaped by domestic pricing dynamics, which influence the competitiveness of palm oil relative to soybean and sunflower oils. Recent data indicates a decline in imports as supply chains adjust to cost pressures and local alternatives gain traction. Strategic economic and trade policies remain key in shaping India’s role as a major palm oil importer.
• Globally, the palm oil sector is affected by biodiesel mandates in key producing nations, regulatory changes, and climate variability. Emerging markets in Africa and the Middle East are becoming critical destinations for palm oil exports, offering new growth avenues. This contrasts with traditional markets such as the European Union, where regulatory restrictions are limiting palm oil’s use in biofuel, reflecting a broader realignment in global demand patterns.