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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.

A three-session losing skid was ended by a 2% increase in Malaysian palm oil futures, which were trading above MYR 4,320 a tonne amid stronger rival edible oils on the Dalian and CBoT markets. Buoyed by indications of robust exports, prices were almost at a six-month high. Cargo surveyors indicated that shipments of Malaysian palm oil products from October 1–10 increased by 13.6% to 18.9% over the previous month. The most recent monthly data, which shows that output decreased by 3.8% in September from August to 1.82 million tons while exports increased by 0.93% to 1.54 million tons last month, supports the contracts' trajectory for their fourth straight weekly gain, which has seen them rise by almost 0.5% thus far. The approaching holiday season in India, the largest consumer, would increase demand for palm oil. Turning to the energy market, crude oil prices are on track to post gains for the second consecutive week, driven by disruptions from a hurricane and growing risks of supply disruptions amid ongoing tensions in the Middle East.

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