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Indonesia's palm oil industry faces shortages as a severe El Nino drought and fires hit production in Kalimantan and Sumatra. Demand is rising because the government is pushing to expand biodiesel use.
A trade association forecasts falling output in 2027 and describes the situation as stressful.
Lower Indonesian output combined with stronger biodiesel mandates tightens the global palm oil balance and supports prices. Buyers of palm-based feed fats should expect firmer costs.
asia.nikkei.comNATSUMI KAWASAKINov 13, 2026After 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.
