As the largest palm oil producer in the world, supply disruptions occurred in Indonesia and Malaysia in 2019-2021 due to El Nino, the Covid-19 pandemic, and the Indonesian policy also affected the palm oil exports of the two countries and subsequently affected the availability (volume ending stocks) of palm oil in the world. Although supply disruption impacts on the ending stocks of Indonesian and Malaysian palm oil. This trend shows a difference where Malaysia’s ending stocks is consistently declines while Indonesia’s relatively fluctuate. So that the combined the ending stocks volume of Indonesia and Malaysia’s palm oil shows an increasing trend. On the other hand, the ending stocks volume of palm oil in the major importing countries showed a significant decline of 36 percent. This condition creates excess demand and causes global palm oil prices to increase.
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