# As La Niña Exits, Palm Oil Production Could Rise in 2023 but Drop in 2024

> Gro Intelligence analysis says La Niña's expected exit should lift Southeast Asian palm oil output in 2023. Yields could then fall in 2024 as drier conditions follow La Niña and possible El Niño develops. Indonesia and Malaysia together supply about 85% of world palm oil, and palm prices have fallen more than 40% from their May 2022 peak.

- Date: 2023-02-21 · published 2023-02-21T12:00:00.000Z
- Category: weather · region Southeast Asia · magnitude medium
- Page: https://feedsoft.ai/events/37249-as-la-nina-exits-palm-oil-production-could-rise-in-2023-but-drop-in-2024
- Commodities: [Palm Oil](https://feedsoft.ai/c/PALMOIL.md)

## Why it matters

Near-term supply is expected to improve, which is bearish for palm oil, but a 2024 drop in output could support prices later. This mixed outlook points to renewed volatility in palm oil and related vegetable oil markets.

## Read by commodity

- PALMOIL: neutral

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| PALMOIL | 2022-12-14 | [Palm oil sentiment in 2023 cloudy amid uncertain supply and demand dynamics - Fastmarkets](https://feedsoft.ai/events/38335-palm-oil-sentiment-in-2023-cloudy-amid-uncertain-supply-and-demand-dynamics.md) | -0.2% | +2.4% |
| PALMOIL | 2026-03-03 | [El Niño/La Niña Update (February 2026) - World \| ReliefWeb](https://feedsoft.ai/events/20089-el-nino-la-nina-update-february-2026-world-reliefweb.md) | +6.5% | +7.1% |
| PALMOIL | 2018-03-05 | [Palm oil output to dip in Q1, rebound to record later in year, say industry sources \| Malay Mail](https://feedsoft.ai/events/66111-palm-oil-output-to-dip-in-q1-rebound-to-record-later-in-year-say-industry.md) | -3.0% | +0.6% |
| PALMOIL | 2024-09-20 | [FAO urges swift action as La Niña threatens global food security](https://feedsoft.ai/events/28229-fao-urges-swift-action-as-la-nina-threatens-global-food-security.md) | +2.6% | +10.6% |
| PALMOIL | 2025-12-17 | [Malaysian oil palm estates largely spared from flooding as Southeast Asia experiences devastating rainfall](https://feedsoft.ai/events/21611-malaysian-oil-palm-estates-largely-spared-from-flooding-as-southeast-asia.md) | +0.6% | +0.6% |

## Sources

- ukragroconsult.com: https://ukragroconsult.com/en/news/as-la-nina-exits-palm-oil-production-could-rise-in-2023-but-drop-in-2024/

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