Palm oil prices fall to multi-year low

Last week, palm oil, despite a slight increase in export prices, became even cheaper compared to alternative oils. Specifically, sunflower oil became approximately $250 per ton more expensive than palm oil, while soybean oil became $100 per ton more expensive.

However, this increased price competitiveness has not yet affected global exports: shipments from Indonesia, Malaysia, and Thailand for September-November 2025 reached a nine-year low of 10.4 million tonnes (-0.9 million tonnes compared to the same period last year).

From December 2025 to March 2026, external shipments are expected to increase, due to reduced competition from soybean oil, as well as current demand from a number of importers whose inventories have significantly decreased. Recent increases in shipments have been observed to China, Iran, and some countries in the African region.

An additional factor supporting exports will be Indonesia’s decision to delay the launch of the B50 biofuel mandate by at least a year. This will limit the prospects for an increase in the global FOB price and reduce supply in Southeast Asia.

Tags: prices, palm oil