- Palm kernel oil prices moved on a firm to upward trend in Q1’26, supported by tighter supply across the palm complex and stronger buying interest toward the end of the quarter.
- Feedstock dynamics remained supportive as palm oil output in key producing countries stayed under pressure during the quarter, which reduced raw material comfort in the wider palm value chain and kept sentiment firm for palm kernel oil.
- Downstream demand remained healthy across food and oleochemical applications, while regular restocking in major importing countries added further support to market direction.
Asia
Palm kernel oil prices in Asia increased during Q1’26 due to firm feedstock conditions and improving downstream demand. In China, buying interest from the food processing and oleochemical sectors remained stable, while tighter supply from Southeast Asian origins supported the upward trend. Routine restocking also kept market activity firm during the quarter. In India, demand from the edible oil sector stayed healthy, and import-side purchasing continued to support the market. A key indicator of strong regional dependence on overseas supply was India’s palm oil imports, projected at 9.05 million metric tons in 2025/26. This continued reliance on imports, along with firm sentiment in the broader vegetable oils market, kept palm kernel oil prices elevated through the quarter.
Europe
In Europe, the prices of palm kernel oil remained firm in the first quarter of 2025. Despite the low availability of exports from key producing nations during the quarter, demand was stable from the various downstream sectors. However, the market players were very conservative in their buying, but this did not have any impact on prices owing to tight supplies. Demand levels in Europe were still steady enough for sentiments to remain high, especially considering the need to gauge global palm supplies. Europe relies heavily on its imports, and the EU imports an estimated 3.50 million metric tons annually from 2025/26. This import reliance kept the regional market exposed to supply constraints in Southeast Asia and supported firm pricing across the quarter.
North America
Palm Kernel Oil prices in North America were seen to be on an increasing trend, following bullish fundamentals for vegetable oils in the global market, together with consistent demands from its various downstream applications. The positive market sentiment prevailed amid the tight global supplies and persistent buying requirements among consumers. Even as the purchase was relatively modest, sustained demand for this product kept the market strong throughout the quarter.