- Palm olein prices in Q1’26 followed a firm upward global trend, supported by tight supply conditions and improving demand across key consuming regions.
- Feedstock influence remained strong, with crude palm oil rising by ~6–8% during the quarter due to reduced output in major producing countries.
- Downstream demand improved steadily, driven by food-sector consumption and restocking activity across Asia, supporting market sentiment.
During Q1’26, palm olein prices showed an upward trend, primarily supported by strong downstream consumption rather than only feedstock dynamics. The rise in crude palm oil feedstock by ~6.90% in China and ~7.73% in India increased production costs, but demand-side pull played a key role in sustaining the trend. Palm olein demand improved across edible applications, especially in frying oils, instant foods, snacks, and bakery products, where it remained a preferred oil due to cost efficiency and stability. Increased activity in quick-service restaurants and food processing industries led to steady procurement, while household consumption remained consistent in key Asian markets. In India, strong edible oil demand and continued import reliance supported steady offtake, while in China, restocking by food manufacturers and higher consumption in packaged food segments strengthened demand. Tight supply from producing countries further supported the market, but it was the sustained demand from downstream food applications that maintained upward pressure.
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