Jakarta. Palm oil prices rose to 4,134 Malaysian ringgit (MYR) per tonne on Tuesday, up 1 percent from the previous day, according to trading on a contract for difference (CFD) tracking the benchmark market. While the commodity has gained 0.46 percent over the past month, it remains 18.56 percent below levels from a year ago.

According to Trading Economics, Malaysian futures jumped around 1 percent on Tuesday after swinging from weakness in the previous session, as a weaker ringgit and firmer rival oils on Chicago and Dalian exchanges boosted sentiment. On the demand side, imports by top buyer India are projected to reach 9.3 million tonnes in 2025/26, up from 7.58 million tonnes the previous year, driven by stronger food demand and more attractive pricing. In China, weak November PMI readings have raised hopes for new policy support ahead of next week’s Central Economic Work Conference.

However, further price gains were tempered by weaker exports, with Intertek reporting a 19.7 percent month-on-month drop in November shipments. In Indonesia, the world’s largest palm oil supplier, recent floods, landslides, and cyclone-related disruptions affected three provinces in Sumatra, but the material losses are still being assessed. Palm oil production in 2024 reached approximately 8.24 million tons in North Sumatra, 699,390 tons in West Sumatra, and 1,060,532 tons in Aceh.

Think-tank Celios revealed that Indonesia could lose Rp 68.67 trillion, or approximately $4.1 billion, from the disaster. “This figure encompasses damage to homes, roads, and bridge infrastructure, among others. It includes loss of household income and agricultural production,” Bhima Yudhistira, the executive director of Celios, said Monday. 

Indonesia’s palm oil industry remains a key driver of the economy. The latest data from the Central Statistics Agency (BPS) showed that the country exported about $20.2 billion worth of palm oil --crude or processed-- between January and October 2025, accounting for 9.05 percent of non-oil and gas exports.

“Our exports of crude palm oil and its derivatives jumped 25.73 percent in value as of October compared to 2024,” Pudji Ismartini, a deputy at BPS, told reporters. Southeast Asia’s largest economy also benefited from a price boost, with global palm oil prices rising 0.8% month-on-month in October to $1,045.04 per metric ton.

From a volume perspective, Indonesia shipped 19.49 million tons of palm oil between January and October 2025, up 7.83 percent from 2024 levels. Exports totaled 1.91 million tons in October alone, supporting the country’s continued trade surplus.