World Bank sees palm oil prices rising in 2026

Global palm oil prices are expected to increase by around 8% in 2026, supported by stronger biofuel demand and elevated energy prices. According to the latest Commodity Markets Outlook by the World Bank, prices are forecast to reach about $1,089 per ton, up from $1,007 in 2025, before stabilizing in 2027.

The main driver behind the increase is rising demand for biofuel feedstocks, as high energy costs push countries to seek alternative energy sources. Both palm oil and soybean oil are seeing stronger consumption due to their key role in biodiesel production.

However, further price gains are expected to be limited by supply factors. The World Bank notes that export availability of vegetable oils may tighten as major producing countries increase domestic use of palm and soybean oil for biofuel production.

Overall, global food markets are projected to remain relatively stable, with food prices expected to rise by only about 2% in 2026 due to ample supply conditions. For Indonesia, the world’s largest palm oil producer, the outlook suggests steady export demand rather than sharp price spikes.

Production is also expected to gradually recover after previous declines. At the same time, rising input costs, particularly for fertilizers, may pressure producers’ margins, while high energy prices will continue to influence both agricultural markets and the broader global economy.

Tags: prices, palm oil