World crude palm oil (CPO) prices are projected to keep rising in 2027. CNBC Indonesia reported that the projection was made by Tungkot Sipayung, Executive Director of the Palm Oil Agribusiness Strategic Policy Institute (PASPI), an Indonesian palm oil policy think tank.
Tungkot expects world CPO prices in 2027 to be in the range of US$1,650 to US$1,720 per tonne. He said the world palm oil market is projected to face a larger demand surplus — demand exceeding supply — than in 2026.
According to Tungkot, world CPO production, which reached 85.4 million tonnes in 2025, is expected to fall to 85.2 million tonnes in 2026 and to around 83.6 million tonnes in 2027.
He linked the decline to the impact of El Niño in Indonesia and Malaysia from the third quarter of 2026, which is expected to last until the first or second quarter of 2027. The largest impact on Indonesian palm oil production is expected to be felt throughout 2027.
PASPI also projects Indonesian CPO production to fall from 51.6 million tonnes in 2025 to around 49.2 million tonnes in 2026 and 47.6 million tonnes in 2027. Prices can be compared on GIMNI's CPO price data; see also El Niño could cut Indonesian palm oil output by up to 2 million tonnes.
Sources monitored
- CNBC Indonesia — Siap-Siap Harga CPO Bisa Merangkak Sampai US$1.720, Ini Penyebabnya (in Indonesian), 31 August 2026.
Last updated:
Indonesian version: PASPI Proyeksikan Harga CPO Dunia 2027 Mencapai US$1.650–US$1.720 per Ton
