Global Palm Oil Prices Fall to Record Lows Due to Import Reductions

The global palm oil market experienced a significant price drop in November 2025 amid decreasing demand and record stock levels. In India, one of the leading importers of edible oils, imports fell by 20.7% in October compared to September, totaling 1.27 million tons. Specifically, palm oil purchases dropped to a five-month low of 600,000 tons. The main reasons for this decline were the substantial stock levels in warehouses and reduced consumer demand, which further pressured spot prices.

This is reported by AgroReview

Changes in Import Structure and Exchange Prices

Analysts estimate that in the 2024/25 marketing year, India reduced its palm oil imports to the lowest level in the past five years. Buyers are increasingly favoring cheaper soybean oil, which affects palm oil procurement levels. These trends were reflected in the exchange with a new decline: December futures for palm oil fell by another 0.9%, reaching a 17-week low of 4,108 ringgits per ton, equivalent to 972 US dollars per ton. Over the past two weeks, prices have dropped by 9% amid expectations of increased stocks in October due to limited export rates compared to production.

Stock Increases in Malaysia and Impact on Other Markets

Forecasts for Malaysia indicate further stock accumulation: in October, stocks may rise by 3.5% compared to September, reaching 2.44 million tons—the highest level since October 2023. According to independent experts, Malaysian palm oil exports could increase by 4.3–5.2%. These changes are already significantly impacting the global vegetable oil market.

“The drop in palm oil prices will increase pressure on soybean and sunflower oil prices in the global market, especially amid rising exports from Indonesia.”

According to the Indonesian Bureau of Statistics, from January to September 2025, palm oil exports, including crude and refined products, reached 17.58 million tons. This is an 11.62% increase compared to the same period last year.