Palm Oil Poised to Outshine Soyoil in 2027 Amid Supply Risks

Palm oil could gain a premium over soyoil in 2027 due to supply risks, according to Eddy Martono, chairman of the Indonesian Palm Oil Association. The industry official told Reuters that El Niño-induced dry weather will weigh on production, potentially lifting prices above rival soyoil.

Palm oil supplies are expected to tighten in 2027 as Indonesia's palm oil output falls by 3.7% to 56.6 million metric tons. Demand for biodiesel is likely to rise 18.5% from a year earlier to a record 17.4 million tons, Martono said.

The combination of lower output and higher domestic consumption will cut Indonesia's exports by 14.9% in 2027 to 26.5 million tons, their lowest level since 2016, he added.