Global vegetable oil production to hit record high again – USDA

According to the preliminary estimate of the US Department of Agriculture (USDA), in 2026/27 MY, world oil production is expected to reach 244.1 million tons, which is approximately 6.8 million tons more than in the current season. This proposal will fully satisfy the forecasted demand of 237.6 million tons.

Palm oil will remain the most important vegetable oil in the world both in terms of production and consumption. World production will reach a record level of 81.4 million tons. This is for 90 thousand tons more than in 2025/26. Indonesia will remain the largest producer with 47.5 million tons, followed by Malaysia with 19.6 million tons and Thailand with 3.7 million tons.

Soybean oil production will also increase in the next fiscal year. The most significant growth of 2.9 million tons to 74.7 million tons is expected. China still remains the largest processor of soybeans and the main producer of soybean oil with a production volume of 21.4 million tons, followed by the United States with slightly more than 14.8 million tons.

It is expected that the production of rapeseed oil in the 2026/27 season will reach 37.2 million tons, which is 2.7 million tons more than in the current season. Production of sunflower oil, according to forecasts, will increase by approximately 2.6 million tons to 23.5 million tons, mainly due to increased production in Ukraine, Russia, and EU countries.

According to estimates, 5% to 10% of the world production of vegetable oils can be processed in the form of waste oil. Thus, the total volume of oil suitable for processing in the world is only about 12-24 million tons.

Tags: sunflower oil, soybean oil, palm oil, edible oils