Palm oil prices expected to rise 10-15% next year

Biofuel push by Indonesia and fertilizer shortages are expected to maintain upward pressure

A farmer unloads oil palm fruit in Selangor, Malaysia. Industry executives expect prices of the widely used commodity to rise further next year. © Reuters

NANA SHIBATA, Nikkei staff writer

November 8, 2024 19:10 JST

BALI, Indonesia -- Palm oil prices are expected to rise by another 10% to 15% in early 2025 after a strong rally this year, particularly if the Indonesian government enforces a new biofuel quota, industry players have forecast.

Continued depressed production, especially in Indonesia and Malaysia, and ongoing disruption to fertilizer supplies because of the Ukraine war will also boost the price of one of the most commonly used edible oils, they added.