The report by the counselor of the US Department of Agriculture shows that due to the Indonesian government's confiscation of palm oil plantations since early 2025, the production of these plantations will decrease. Therefore, the counselor has lowered the estimated palm oil production in Indonesia for 2025/26 to 46.7 million tons.

The counselor of the US Department of Agriculture has lowered the estimated palm oil production in Indonesia for 2025/26 to 46.7 million tons, due to a decrease in production caused by the government's confiscation of plantations. The expected decrease in supply will significantly push up the spot price of palm oil, leading to a tightening of market supply and demand, which constitutes a significant positive factor.

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