EU oilseed production falls 1% amid heat and drought, prompting a 7% increase in imports for 2026/27. Lower domestic harvests of rapeseed and sunflower tighten supply, while higher crushing volumes support processing demand, likely pushing oilseed prices upward.
Asia
In the Asian region, crude palm kernel oil prices moved upward as Southeast Asian origins faced a mixed supply picture. Palm kernel availability in Malaysia improved through the quarter, but crude kernel oil production rose only marginally in August, which limited extra supply for export. Malaysian imports of palm kernel oil also increased, showing that local processors needed more material to meet orders. Export shipments jumped in August as buyers stepped up purchases, and palm export prices rose with petroleum, keeping costs firm. However, Malaysian palm oil stocks built up as exports to South Asia and the Middle East weakened, which kept the increase moderate.
Europe
European import costs for crude palm kernel oil rose sharply in July as vegetable oil markets tracked crude oil higher, then eased partly in August. Even after this correction, values stayed above earlier levels. The EU Deforestation Regulation, now due in December 2026 after a second delay, added separate support, as compliant crude kernel oil traded at a significant premium to standard supply. Coconut oil, the closest substitute, became cheaper during the quarter, which widened the gap between the two oils and limited demand from some lauric oil users.
North America
North America relies on imported crude palm kernel oil and buys close to world benchmark levels, so regional costs followed the global rise. Lower global production and export forecasts for the new season pointed to tighter availability for importers. Soybean oil, a competing oil, eased from its earlier highs in August, which gave some buyers a cheaper alternative and capped further gains.
Analyst Insight
According to Procurement Resource, crude palm kernel oil prices are likely to stay firm on lower global output expectations and demand for compliant supply, though rising palm stocks may slow further gains.
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Asia
Asian crude palm kernel oil markets moved lower during Q2 2026 as supply conditions improved across Indonesia and Malaysia. USDA estimated Indonesia’s PKO production at 5.2 million MT in 2025/26, with exports at 1.5 million MT, indicating substantial availability for regional and international buyers. Domestic industrial consumption remained strong, driven mainly by oleochemicals, soaps, detergents and personal-care applications, but increased production reduced the urgency to secure additional cargoes. Malaysia also contributed to improved availability, with USDA estimating production at 2.22 million MT and exports near 1.15 million MT. Stronger Southeast Asian supply outweighed steady industrial consumption, keeping the market under pressure through the latter part of the quarter.
Europe
European crude palm kernel oil conditions softened as improved Southeast Asian availability reduced replacement-cost pressure for importers. The region remained heavily dependent on imported material, particularly for oleochemical, detergent, cosmetics and specialty chemical production. EU remained an important destination for Malaysian PKO, and the product remained competitive against other lauric oils. Purchasing stayed cautious as buyers anticipated greater supply availability, while weaker import activity into the Netherlands earlier in the marketing year pointed to restrained demand. Feedstock competition remained important, with users adjusting procurement between palm kernel and coconut-derived oils according to availability and processing requirements.
North America
North American crude palm kernel oil markets also benefited from softer Southeast Asian supply conditions, although freight and downstream processing costs limited the extent of the decline in landed values. The United States remained one of Indonesia’s major PKO export destinations. Demand from surfactants, personal care, food ingredients and industrial oleochemicals remained steady, but buyers avoided aggressive inventory building as overseas availability improved.
Crude Palm Kernel Oil is known as an edible plant oil that is extracted from the kernel of the oil palm Elaeis guineensis. It should not be confused with the other two edible oils derived from palm fruits: palm oil, that is derived from the pulp of the oil palm fruit, and the coconut oil, that is derived from the kernel of the coconut.
Ghee, Butter, Ice-Cream, Chocolate, Dairy Products, Soap, Cream, Body Lotions, Detergents
Cargill, Incorporated, United Palm Oil Industry Public Company Limited, Wilmar International Ltd, Sime Darby Plantation Berhad, IOI Corporation Berhad, Musim Mas Holdings Pt. Ltd
CurrencyUS$ (Data can also be provided in local currency)
Supplier Database AvailabilityYes
Customization ScopeThe report can be customized as per the requirements of the customer
Post-Sale Analyst Support360-degree analyst support after report delivery
Note: Our supplier search experts can assist your procurement teams in compiling and validating a list of suppliers indicating they have products, services, and capabilities that meet your company's needs.
In the mechanical extraction process, production of Crude Palm Kernel Oil involves three basic steps, which starts with kernel pre-treatment, then screw-pressing, and finally oil clarification. This method can be used and is suitable for both small- and large- capacity operations.
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