This episode reviews significant developments in the global palm oil market.
- Malaysia’s palm oil sector is experiencing notable volatility. In December 2025, stock levels are projected to increase by 3 percent month over month to 2.93 million tons, driven by slower export growth. At the same time, production has fallen 11 percent month over month to 1.72 million tons. However, cumulative output for the first eleven months of 2025 rose 3.4 percent year over year to 18.45 million tons. Rising inventories alongside solid production could place downward pressure on crude palm oil prices as 2026 approaches. Meanwhile, the sector is navigating a contrast between its growing role in carbon markets and persistent challenges in pricing competitiveness, logistics, and trade relations, especially with China and India.
- Indonesia is taking a strategic turn with the introduction of a B50 biodiesel mandate, aiming to raise the palm oil share in biodiesel to 50 percent by late 2026. This move is expected to boost domestic demand, although analysts warn it may disrupt the supply-demand balance. As one of the world’s leading palm oil producers, Indonesia’s policy shifts continue to shape global market pricing and sustainability standards.
- Cameroon is also advancing its role in the palm oil sector, with plans to increase crude palm oil production by 20,500 tons in 2026. Supported by a CFA51.7 billion investment from Standard Chartered Bank London, the country is developing new processing infrastructure to reduce reliance on imports and improve food security. Strategies include expanding plantation areas, enhancing yields among smallholder farmers, and improving logistics to address a structural supply deficit.
