# Lower palm oil output into early next year likely to support prices - The Business Times

> Malaysian palm oil hit a four-year high this week as lower output into early next year and tight soybean oil supplies lifted prices. Higher US and Indonesian biodiesel mandates are expected to further draw down palm oil inventories, with Indonesia and Malaysia output forecast to fall nearly 5% in 2016.

- Date: 2016-11-24 · published 2016-11-24T12:00:00.000Z
- Category: weather · region Indonesia · magnitude medium
- Page: https://feedsoft.ai/events/6694-lower-palm-oil-output-into-early-next-year-likely-to-support-prices-the
- Commodities: [Palm Oil](https://feedsoft.ai/c/PALMOIL.md), [Soybean Oil](https://feedsoft.ai/c/SBO.md)

## Why it matters

Tighter palm supply and rising biodiesel demand in the US and Indonesia support palm oil prices in the short term. Recovery from El Niño is expected to be gradual, so supply constraints may persist into the second half of next year.

## Read by commodity

- SBO: bullish ▲
- PALMOIL: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| PALMOIL | 2026-10-22 | [Palm oil prices to stay high next year on Southeast Asia drought](https://feedsoft.ai/events/523-palm-oil-prices-to-stay-high-next-year-on-southeast-asia-drought.md) | -0.4% | — |
| PALMOIL | 2023-09-06 | [From rice to palm oil, crop output forecasts for Asia-Pacific lower as El Nino strengthens \| The Straits Times](https://feedsoft.ai/events/33998-from-rice-to-palm-oil-crop-output-forecasts-for-asia-pacific-lower-as-el-nino.md) | -4.2% | -6.4% |
| PALMOIL | 2025-02-26 | [Palm oil supplies to remain tight for next 2-3 months - Markets - Business Recorder](https://feedsoft.ai/events/26150-palm-oil-supplies-to-remain-tight-for-next-2-3-months-markets-business-recorder.md) | -5.5% | -2.7% |
| PALMOIL | 2020-11-04 | [Palm oil climbs to near 10-month high on tight supply outlook - Markets - Business Recorder](https://feedsoft.ai/events/50253-palm-oil-climbs-to-near-10-month-high-on-tight-supply-outlook-markets-business.md) | +6.0% | +10.9% |
| PALMOIL | 2020-12-03 | [Low production to support CPO prices \| The Star](https://feedsoft.ai/events/49758-low-production-to-support-cpo-prices-the-star.md) | +1.0% | +5.3% |
| SBO | 2023-11-23 | [El Nino poses risk to 2024 palm oil output in Indonesia, Malaysia - The HinduBusinessLine](https://feedsoft.ai/events/33277-el-nino-poses-risk-to-2024-palm-oil-output-in-indonesia-malaysia-the.md) | -1.1% | -5.2% |
| SBO | 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) | +1.8% | +3.3% |
| SBO | 2024-09-06 | [Rising sunflower oil and meal prices support sunseed prices in Ukraine](https://feedsoft.ai/events/28427-rising-sunflower-oil-and-meal-prices-support-sunseed-prices-in-ukraine.md) | -2.7% | +1.0% |

## Sources

- businesstimes.com.sg: https://www.businesstimes.com.sg/companies-markets/energy-commodities/lower-palm-oil-output-early-next-year-likely-support-prices

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