Palm Oil Set to Outshine Soyoil in 2027 Amid Supply Risks

Palm oil may gain an advantage over soyoil in 2027 due to supply risks, according to Eddy Martono, chairman of the Indonesian Palm Oil Association. El Niño-induced dry weather is expected to impact production, potentially leading to higher prices for palm oil. In comparison, supplies of soyoil may not be as affected.

The tightening supply of palm oil in Indonesia, which is a top exporter of biodiesel, could lead to increased demand and higher prices. This scenario is similar to 2024, when palm oil traded at a premium over soyoil due to similar supply risks.