Palm oil futures on the Bursa Malaysia experienced volatility in October 2025, as shifting Indonesian biofuel policies raised concerns about global supply, according to market analysts. The fluctuations approach amid broader instability in global food markets, impacting commodities ranging from sugar to pork and extending to Vietnam’s growing aquaculture exports.
The price adjustments in palm oil are largely attributed to changes in Indonesia’s biofuel mandates, with experts warning that reduced availability from the world’s largest producer could drive up prices, particularly for countries heavily reliant on Indonesian supplies. OilWorld, a German market analysis firm, cautioned that a tightening of global edible oil supplies could lead to price increases for some commodities while others experience declines.
India, the largest consumer of vegetable oils, is bracing for structural changes in its import patterns for the 2025/26 season. While palm oil imports are expected to remain stable, demand for soybean and sunflower oil is projected to fluctuate based on global price differentials.
Sugar markets also demonstrated uncertainty in October 2025, with prices on the London and New York exchanges reacting to complex factors. A continued decline in sugar content from Brazil, as reported by Unica, is supporting an upward price trend. However, strong production in Thailand and India could potentially offset this and exert downward pressure.
Pork prices within the European Union have rebounded from earlier lows in 2025, with China remaining a key export market despite recent tariff implementations. Ongoing trade disputes, however, are expected to disrupt supply chains in the coming months.
Vietnam’s fisheries sector is showing resilience, particularly in the export of pangasius to Brazil. In the first nine months of 2025, Brazil became Vietnam’s fastest-growing single market for pangasius, second only to the United States and China. According to the Vietnam Association of Seafood Exporters and Processors (VASEP), export revenue to Brazil increased significantly compared to the same period in 2024. This diversification into Latin American markets is helping the Vietnamese seafood industry mitigate the impact of trade protection measures in traditional markets.
Sime Darby, a Malaysian conglomerate with extensive plantation holdings in Malaysia, Indonesia (Sumatra, Borneo and Sulawesi), and a history dating back to 1910, continues to be a major player in the palm oil market. The company, listed on the FTSE Bursa Malaysia KLCI, was the world’s largest palm oil producer in 2010, controlling nearly 600,000 hectares of plantations and approximately six percent of global production. In November 2017, Sime Darby Property and Sime Darby Plantations were spun off as independently listed companies.
Southern Acids (M) Berhad reported a palm kernel production of 2,892 tonnes in October 2025, according to a recent announcement. Palm Oil Oct ’25 futures (KOV25) closed at 4,320, down 30 points (-0.69%) on October 15th, 2025, according to Barchart.com.
