# El Niño to crimp Indonesian palm oil output, producer group says

> 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.

- Date: 2026-08-28 · published 2026-08-28T12:00:00.000Z
- Category: weather · region Indonesia · magnitude medium
- Page: https://feedsoft.ai/events/18012-el-nino-to-crimp-indonesian-palm-oil-output-producer-group-says
- Commodities: [Palm Oil](https://feedsoft.ai/c/PALMOIL.md)

## Why it matters

Lower exports from the world's largest palm producer tighten global vegetable oil supply, adding upward pressure on palm oil prices into 2027.

## Read by commodity

- PALMOIL: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| PALMOIL | 2026-09-02 | [El Niño to crimp Indonesian palm oil output, producer group says - MPOC](https://feedsoft.ai/events/17547-el-nino-to-crimp-indonesian-palm-oil-output-producer-group-says-mpoc.md) | -0.5% | -4.3% |
| PALMOIL | 2026-10-01 | [El Niño Set to Crimp Palm Oil Output in 2027, Squeezing Supply](https://feedsoft.ai/events/17546-el-nino-set-to-crimp-palm-oil-output-in-2027-squeezing-supply.md) | -5.8% | -3.8% |
| PALMOIL | 2026-07-01 | [El Niño impact on Malaysian and Indonesian palm oil production \| Report](https://feedsoft.ai/events/18907-el-nino-impact-on-malaysian-and-indonesian-palm-oil-production-report.md) | +0.6% | +0.4% |
| PALMOIL | 2023-09-29 | [Indonesian Palm Oil Association sees palm oil prices rising in 2024 as El Nino crimps domestic output](https://feedsoft.ai/events/34219-indonesian-palm-oil-association-sees-palm-oil-prices-rising-in-2024-as-el-nino.md) | -4.5% | -3.5% |
| PALMOIL | 2026-04-29 | [Indonesia 2026 crude palm oil output to fall due to El Nino, high fertiliser prices, association says \| The Star](https://feedsoft.ai/events/19818-indonesia-2026-crude-palm-oil-output-to-fall-due-to-el-nino-high-fertiliser.md) | +2.8% | -1.1% |

## Sources

- theedgemalaysia.com: https://theedgemalaysia.com/node/816155

---
Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.