Malaysian palm oil futures posted their strongest weekly gain in months, driven by stepped-up Indonesian purchases ahead of the full B50 biodiesel mandate implementation in October, which is expected to tighten exportable supplies from the world's top producer. Developing El Niño conditions raising dryness risks across Indonesia and Malaysia added further upward pressure on production outlook.
Palm oil futures climbed to their highest level in approximately 20 months, driven by Indonesia's B50 biodiesel mandate increasing domestic palm oil consumption, dry weather and El Niño risks threatening yields in Southeast Asia, and reduced sunflower oil supplies from the Black Sea region shifting demand toward palm oil. USDA forecasts global palm oil stocks for 2026/27 to fall to a nine-year low, tightening the supply outlook, though a stronger Malaysian ringgit and competitive soybean oil prices may cap further gains.
| Product | Region | Incoterm Basis | Price | Last Updated Month |
|---|---|---|---|---|
| Palm Oil | USA | CIF | USD 1,218.06/MT | June 2026 |
| Palm Oil | India | CIF | USD 1,216.83/MT | June 2026 |
| Palm Oil | Netherlands | CIF | USD 1,236.20/MT | June 2026 |
| Palm Oil | China | CIF | USD 1,359.33/MT | June 2026 |
| Palm Oil | Malaysia | FOB | USD 1,157.61/MT | June 2026 |
| Palm Oil | USA | CIF | USD 1,236.60/MT | May 2026 |
| Palm Oil | India | CIF | USD 1,235.36/MT | May 2026 |
| Palm Oil | Netherlands | CIF | USD 1,255.02/MT | May 2026 |
| Palm Oil | China | CIF | USD 1,387.17/MT | May 2026 |
| Palm Oil | Malaysia | FOB | USD 1,175.23/MT | May 2026 |
Stay updated with the latest palm oil prices, historical data, and tailored regional analysis
Asia
In Malaysia, the monthly average Palm Oil price was ~MYR 4.22/kg in April and around MYR 4.35/kg in the subsequent month, showing an increase of ~3.1%. The market was primarily supported by supply-side concerns as El Niño-driven dry weather threatened yields across Southeast Asia, with Indonesia’s crude palm oil output expected to decline by 1–2 MMT, while fertilizer costs remained nearly 30% higher, raising production expenses. Although global production for 2026/27 was projected at 81.361 MMT, export supply continued to rely heavily on Indonesia (24.15 MMT) and Malaysia (15.8 MMT), reinforcing Asia’s role as the global price-setting region. Domestic consumption also remained strong, particularly due to Indonesia’s expanding biodiesel program under the B50 mandate, tightening export availability. However, gains were capped as India’s imports fell to 513,403 MT in April before a partial recovery in May because of subdued institutional demand and substitution toward competing vegetable oils.
Europe
In Germany, the monthly average Palm Oil price was ~EUR 0.94/kg in April and around EUR 0.97/kg in the subsequent month, showing an increase of ~3%. Prices were supported by biofuel-related consumption, although weaker edible oil demand and substitution toward alternative vegetable oils limited upward movement across the region.
North America
In the United States, the monthly average Palm Oil price was ~USD 1,072.48/MT in April and around USD 1,105.66/MT in the subsequent month, showing a slight upward trend. Prices gained support from steady demand in food and oleochemical applications, while palm oil remained less preferred than soybean oil for biofuel blending.
Analyst Insight
According to Procurement Resource, palm oil prices are expected to remain supported by supply uncertainty and demand from food and industrial sectors, while competition from other vegetable oils may restrict significant increases.
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Asia
Palm oil prices in Asia maintained a consistent upward trend through Q1 2026 driven by combination of tightening crude palm oil feedstock supply from major producing origins and progressively improving demand conditions across key consuming markets. In China, price gains were primarily driven by firm food-sector procurement activity and routine restocking cycles, as buyers moved to replenish inventories amid concerns over sustained feedstock tightness.
Import demand remained well-supported through the quarter as market participants tracked global supply developments closely. In India, palm oil's competitive pricing advantage within the broader vegetable oils complex continued to attract consistent import-side buying, with edible oil demand remaining structurally firm across domestic consumption channels. Firm market sentiment and limited spot availability further reinforced the upward price direction across the region through the quarter.
Europe
Palm oil prices in Europe followed a stable-to-firm trend throughout Q1 2026, with regional market direction remaining closely aligned with evolving supply conditions in major crude palm oil exporting countries. Tightening feedstock availability at the origin level filtered through to European import markets, sustaining a broadly supportive pricing environment. Demand from the food processing and biofuel segments remained steady, providing consistent offtake that underpinned market sentiment.
North America
Palm oil prices in North America moved upward through the quarter, tracking gains in the broader vegetable oils complex and reflecting the influence of global supply-side tightness on regional import markets. Reduced crude palm oil output from key producing origins continued to limit available supply, sustaining firm pricing conditions across the region. Demand from food manufacturers and industrial end-users remained stable, providing a reliable base of offtake support throughout the period.
Palm oil is a versatile and widely used vegetable oil derived from the fruit of the oil palm tree. It is commonly found in food products like margarine, snacks, and baked goods, as well as in non-food items such as cosmetics, detergents, and biodiesel. Palm oil is valued for its high yield compared to other vegetable oils, making it an economically significant crop. However, its production has raised environmental concerns, particularly regarding deforestation and habitat destruction in tropical regions.
Wilmar International Ltd, Sime Darby Plantation Berhad, IOI Corporation Berhad, Kuala Lumpur Kepong Berhad, United Plantations Berhad, Kulim (Malaysia) Berhad.
CurrencyUS$ (Data can also be provided in local currency)
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Palm oil has numerous industrial uses beyond the food sector. It is commonly found in cosmetics, soaps, detergents, and toiletries due to its ability to enhance texture and prolong shelf life. In addition, palm oil is used in biodiesel production as a renewable energy source. It also serves as a key ingredient in the manufacturing of lubricants, candles, and pharmaceuticals. Its high yield and versatile properties make palm oil an essential resource for various industries, though environmental concerns surround its production.
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