The Zhitong Finance App learned that the ongoing drought caused by strong El Niño will reduce yield next year, and palm oil production in Indonesia and Malaysia is expected to decline in 2027, thereby tightening global supply and boosting prices. According to the median market estimate from a survey of seven analysts, the combined production of the world's two largest palm oil producers is expected to drop by about 3%. Among them, Indonesia's production is expected to drop to 49 million tons, and Malaysia's production is expected to drop to 19.5 million tons.

The Zhitong Finance App learned that the ongoing drought caused by strong El Niño will reduce yield next year, and palm oil production in Indonesia and Malaysia is expected to decline in 2027, thereby tightening global supply and boosting prices. According to the median market estimate from a survey of seven analysts, the combined production of the world's two largest palm oil producers is expected to drop by about 3%. Among them, Indonesia's production is expected to drop to 49 million tons, and Malaysia's production is expected to drop to 19.5 million tons.