Indonesia’s palm oil exports for 2024/25 have been revised down to 22.8 MMT due to reduced demand and the B40 biodiesel mandate. However, production is expected to rise 3% to 47 MMT in 2025/26 due to improved yields.
Palm oil prices surged 24% year-on-year, narrowing their competitiveness with other oils. Soybean consumption remains steady at 3 MMT, with imports projected at 2.7 MMT, mainly from the U.S., and 5.5 MMT, driven by poultry feed demand.
Tariff adjustments with the U.S. and the EU-Indonesia trade pact could aid future exports, but weather patterns and currency fluctuations remain key risks.
Indonesia’s oilseed sector faces a delicate balance between production gains, demand fluctuations, and trade policy changes, with weather and currency trends playing a decisive role.
