This episode provides a detailed analysis of the global palm oil market.

• Malaysian palm oil futures have rebounded after reaching a 17-week low, with the benchmark January contract rising by RM29 to RM444 per metric ton. This recovery is influenced by movements in global edible oil markets. Previously, stable production levels and profit taking had driven prices down. Looking ahead, Malaysia projects a two-year high in palm oil inventory, reaching approximately 2.44 million metric tons due to production surpassing export demand.
• India, a major consumer, continues to reduce its palm oil imports, a trend impacting Malaysian futures. While specific figures are limited, this reduced demand adds pressure to Malaysian supply chains. In Brazil, there is a strategic push to increase domestic palm oil production and reduce import reliance, which currently accounts for 60% of national consumption. In Pará, the company Denpaso is leading this effort through advanced processing infrastructure and the cultivation of disease-resistant hybrid palms, which may yield 8 to 10 tons per hectare. The strategy also integrates family farming to boost rural household income.
• Since 2019, Denpaso has produced about 500,000 hybrid seedlings annually, and despite challenges like disease and land disputes, its partnerships with local communities present a scalable model for Brazil’s palm oil sector. Meanwhile, India’s palm oil imports fell sharply in October 2025 to 750,000 metric tons from 980,000 the previous month. This five-month low results from high global prices, muted festival demand, and high port inventories. A pivot toward cheaper alternatives like soybean and sunflower oils has contributed to a 16% year-over-year decline in palm oil imports.
• These consumption patterns in major markets like India are exerting downward pressure on the global palm oil industry. At the same time, environmental and transparency issues persist. As COP30 talks approach, sustainability and deforestation remain top concerns. Only half of the leading palm oil producers, processors, and traders publicly disclose deforestation monitoring measures. While more companies are committing to zero deforestation, weak supply chain traceability continues to hamper progress, threatening both market confidence and environmental health. These developments underscore the need for more sustainable and transparent industry practices.