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Palm oil is a vegetable oil obtained from palm oil and is used in a variety of consumer goods, from processed foods to biofuels. Indonesia is a major palm oil producer, with a record 43.5 million tonnes of palm oil produced in 2020/2021. Indonesia and Malaysia are also the world's largest palm oil exporters, with total exports of more than 28.8 million and 17 million tons in 2020/2021, respectively. India imports the most palm oil of any country, with an import value of around $5.5 billion for 2020.

Following three sessions of losses, Malaysian palm oil futures increased to almost MYR 4,980 per tonne, bolstered by news that the European Parliament is approving a one-year postponement of the new regulation and is considering loosening a proposed ban on the import of goods linked to deforestation, such as soy. Depleted supplies, increased local consumption, and Malaysia's limited supply all contributed to price increases. Even with today's increase, the contracts are still headed for their first weekly drop in four, down about 2.5 percent so far, as a result of indications of declining shipments in November. Comparing the first 10 days of the month to the same period in October, cargo surveyor data revealed that exports of Malaysian palm oil products decreased by 14.6% to 15.8%. Meanwhile, concerns are growing about potential biofuel policy changes in the US under the incoming presidential administration of Donald Trump, which could potentially lead to a decrease in palm oil’s use for biodiesel production.

Worldwide palm oil consumption: 73.87 million tons. Worldwide palm oil production: 75.5 million tons