Higher Palm Oil Output, Stocks to Boost Edible Oil Supply

17-Dec-2025 05:24 PM

Singapore. Palm oil will continue to be a significant contributor to the increase in global vegetable oil supply next year. Production of this most traded edible oil is projected to reach a new record high of 80 million tons, which is expected to improve the global market and put some downward pressure on prices.

According to a leading industry analyst, palm oil's share of the total increase in global vegetable oil production is likely to improve to 43 percent, making it the primary engine of growth within the entire category.

Soybean oil production, on the other hand, is expected to increase only marginally after a strong surge in the 2024-25 season. Overall, its global supply is expected to improve by 1 percent. Better soybean oil production is anticipated in Argentina, Brazil, and the United States.

Like palm oil, rapeseed/canola oil production is also expected to see a good increase, leading to improved supply and availability.

It is worth noting that its supply had been partially disrupted recently due to adverse weather conditions in key producing and exporting countries and uncertainty in some regions.

As for global demand for edible oils, it is projected to increase by 2.6 percent on an economic basis. Demand and consumption of palm oil, in particular, are expected to rise significantly due to its increasing use in biodiesel production.

A better balance between global demand and supply of edible oils is expected, which could keep the ending stock stable at around 29.8 million tons.