Palm oil prices fell to a multi-year low.
Palm oil has become significantly cheaper than rival oils, with sunflower oil about $250 per ton and soybean oil $100 per ton higher. Exports remain weak, hitting nine-year lows, but shipments may rise from December as demand improves and Indonesia delays its B50 biofuel mandate by at least one year.
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.
At the same time, the increase in price competitiveness has not yet affected global exports: shipments from Indonesia, Malaysia, and Thailand for September-November 2025 reached a 9-year low of 10.4 million tons (-0.9 million tons compared to the same period last year).
An increase in external supplies is expected between December 2025 and March 2026, driven by reduced competition from soybean oil and current demand from a number of importers whose inventories have significantly decreased. Recent increases in shipments have been observed to China, Iran, and some African countries.
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.
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Source : Ukr Agro Consult
