# El Nino, biofuel regulations squeeze Indonesian palm oil producers

> 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.

- Date: 2026-11-13 · published 2026-11-13T09:06:38.925Z
- Category: weather · region Indonesia · magnitude medium
- Page: https://feedsoft.ai/events/97460-el-nino-biofuel-regulations-squeeze-indonesian-palm-oil-producers
- Commodities: [Palm Oil](https://feedsoft.ai/c/PALMOIL.md)

## Why it matters

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.

## Read by commodity

- PALMOIL: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| 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 | 2026-08-28 | [El Niño to crimp Indonesian palm oil output, producer group says](https://feedsoft.ai/events/18012-el-nino-to-crimp-indonesian-palm-oil-output-producer-group-says.md) | +4.5% | +1.3% |
| 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 | 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 | 2020-12-02 | [Palm oil prices to increase as global supply squeezed - Biofuels International Magazine](https://feedsoft.ai/events/49760-palm-oil-prices-to-increase-as-global-supply-squeezed-biofuels-international.md) | +0.2% | +4.2% |

## Sources

- asia.nikkei.com: https://asia.nikkei.com/business/markets/commodities/el-nino-biofuel-regulations-squeeze-indonesian-palm-oil-producers

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