This episode delivers a comprehensive update on the global palm oil market as of July 20, 2025.
- In Malaysia, palm oil futures fell due to profit-taking and weaker export data. The October contract on the Bursa Malaysia Derivatives Exchange dropped by RM12 to RM4212 per metric ton, following export reductions of 5.3 to 6.2 percent from July 1 to 15, as reported by AmSpec Agri Malaysia and Intertek Testing Services. Additionally, Malaysia raised its crude palm oil reference price, increasing export duties from 8.5 percent to 9 percent.
- Despite these setbacks, Malaysia maintains a strong position in the global market, navigating competition with other edible oils, commodity price fluctuations, and currency exchange shifts. Meanwhile, Indonesia is contending with a 32 percent U.S. tariff on its goods, compared to a 25 percent tariff on Malaysian imports, which may undermine Indonesia's competitiveness in the U.S. market. Domestically, Indonesia is advancing its biodiesel mandate, with expected levies reaching R30 trillion to support growing biodiesel consumption, although it remains exposed to global trade policy shifts.
- India aims to dramatically increase its domestic crude palm oil production from 350,000 to 2.3 million tons by 2029 by expanding plantations from 600,000 to 1 million hectares. This is supported by the National Oil Palm Mission and corporate investments, yet the country continues to rely heavily on imports. Technology adoption, including API integration in plantation management, is enhancing productivity.
- In the European Union, palm oil imports fell by 20 percent year over year, with Italy and Spain leading the decline due to changes in demand and biofuel policy. The Netherlands remains the largest EU importer, though it also saw a marginal decrease. This trend reflects a broader regulatory shift toward sustainability and more controlled palm oil usage in response to environmental concerns.
- Nigeria is positioned for record profits, buoyed by strong global prices and solid domestic output. However, the country still faces a supply shortfall, necessitating expanded production and policy support to reduce import dependence.
- Overall, the global palm oil market is influenced by a complex mix of national strategies, trade negotiations, environmental policies, and investment initiatives that continue to reshape supply and demand dynamics worldwide.
