
The Indonesian Palm Oil Association (Gapki) estimates Indonesian palm oil output could fall by up to 3 million tonnes in 2027 because of severe El Niño conditions. Its estimate was revised down from 4-5 million tonnes after some plantation regions received rain.
Export volumes are expected to decline as domestic biodiesel use absorbs more supply.
Lower exports from the world's largest palm producer tighten global vegetable oil supply, adding upward pressure on palm oil prices into 2027.
After 181 past bullish weather events, Palm Oil moved a median +0.5% over 5 sessions (56% higher; middle half -0.9% to +1.9%), and +0.3% over 20.
Moves of each commodity's benchmark from the last close before the event. Historical reads pool past events of the same kind; they describe what happened, not what will. Not investment advice.