This episode presents a comprehensive overview of the global palm oil market.

• In Malaysia, palm oil futures reached a three-week high, supported by rising soybean oil prices and a weaker ringgit. The January benchmark contract climbed to RM4,260 per metric ton, though gains were tempered by a slight currency appreciation that affected foreign buying. Despite ongoing monsoon conditions, major producers like S.D. Guthrie reported steady operations. October recorded a notable 11.02 percent month-on-month production rise, pushing inventories to a 6.5-year high. However, higher output pressured export volumes, even as export value rose by 4.9 percent to RM82.6 billion.
• Indonesia, the world’s top palm oil producer, is navigating policy uncertainty. A government crackdown has reclaimed 3.4 million hectares of unauthorized plantations, which could disrupt future production. Domestic supply has tightened under an expanding biodiesel mandate, elevating prices. Analysts suggest that if current policies persist, futures may climb to record highs, although long-term production risks loom due to reduced investment in cultivation and fertilization. A potential tariff agreement with the United States may offer some export relief.
• In the European Union, palm oil imports have dropped by 18 percent to 1.08 million tons amid policy-driven reductions in biofuel-related demand. While Europe remains an important market, importers like the Netherlands, Italy, and Germany are transitioning toward sustainable alternatives such as waste oils and fats. This shift reflects broader scrutiny of palm oil’s environmental impact and underscores evolving trade dynamics.