Global Oilseed Markets: February 2026 Overview

The latest edition of OIL WORLD highlights a pronounced shift in global oilseed production, driven largely by structural challenges in the palm oil sector. Diminishing growth in palm oil—especially from Indonesia—has prompted a surge in plantings and production of soybeans, sunflower, and rapeseed worldwide. Over the past five years, harvested areas for these crops have expanded by a combined 25.5 million hectares, with Brazil, Russia, Kazakhstan, Argentina, Australia, the EU, and Canada leading the growth.

Palm oil exports from Indonesia, Malaysia, and Thailand rebounded in December 2025, increasing by 1.2 million tonnes year-on-year, thanks to competitive price differentials. However, the sector faces uncertainty due to government interventions and reduced fertilizer application in Indonesia, which is expected to depress yields and exports further in 2026 and beyond.

Meanwhile, the EU’s sunflower seed crushings have declined to a nine-year low, contrasting with increased processing of rapeseed and soybeans. Crushers are shifting to more lucrative oilseeds, responding to deteriorating sunflower seed margins. France and Kazakhstan have seen rising exports of sunflower oil and meal, with Kazakhstan benefiting from a record crop and favorable weather.

In the Americas, Brazil’s biodiesel production surged following an increase in admixture mandates, boosting soya oil consumption. The US introduced new biofuel regulations, favoring domestically produced feedstocks and potentially increasing demand for US soya oil and Canadian canola oil. Argentina’s soybean and corn crops are threatened by drought, while Bolivia’s soybean exports are set to rise after export limitations were eased.
Australia’s canola exports hit a four-year low in late 2025 due to depleted supplies and logistical delays, but stocks are higher than last year, setting the stage for increased shipments in 2026. Türkiye emerged as the world’s largest importer of sunflower seed, responding to domestic shortages and drought-induced crop failures.

Price trends reflect these shifts: US soybean and soya oil prices rallied, supported by policy changes and speculative demand, while palm oil traded at discounts, stimulating imports in India, China, and other markets. The global oilseed landscape is adapting rapidly, with acreage expansion and shifting trade flows responding to supply disruptions and evolving policy frameworks.