Palm Kernel Oil Price Trend Analysis 2026: Latest News, Historical Prices, Supply Demand Analysis, Market Insights & Price Drivers

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Written ByPragati Agarwal

Procurement Resource Database

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  • 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.

About Palm Kernel Oil

Palm Kernel Oil is known as an edible plant oil that is extracted from the kernel of the oil palm fruit. It is manufactured by the physical refining of crude palm kernel oil. Its properties as well as composition differ significantly from palm oil.

Palm Kernel Oil is generally semi-solid at room temperature unlike other oil-types which are obtained from the rest of the fruit. This oil resembles coco oil as when it is eaten, it produces a soft sensation in the mouth like cacao. Due to its neutral taste and long life, palm kernel oil can also be utilised as a substitute for cacao and fats found in milk.

Palm Kernel Oil Product Detail

Industrial Uses

Cosmetics, Food Products, Solvents, Intermediates, Other

Supplier Database

Cargill, Incorporated, Wilmar International Ltd, BASF SE, Bunge Loders Croklaan (Bunge Limited), Natures Natural India, IOI Corporation Berhad

Regional Coverage

Asia Pacific

China, India, Indonesia, Pakistan, Bangladesh, Japan, Philippines, Vietnam, Iran, Thailand, South Korea, Iraq, Saudi Arabia, Malaysia, Nepal, Taiwan, Sri Lanka, UAE, Israel, Hongkong, Singapore, Oman, Kuwait, Qatar, Australia, and New Zealand

Europe

Germany, France, United Kingdom, Italy,Spain, Russia, Turkey, Netherlands, Poland, Sweden, Belgium, Austria, Ireland Switzerland, Norway, Denmark, Romania, Finland, Czech Republic, Portugal and Greece

North America

United States and Canada

Latin America

Brazil, Mexico, Argentina, Columbia, Chile, Ecuador, and Peru

Africa

South Africa, Nigeria, Egypt, Algeria, Morocco

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.

Palm Kernel Oil Production Process

  • Production of Palm Kernel Oil via Extraction

The conventional oil extraction process to manufacture Palm Kernel Oil involves frying of palm kernels in old oil or heating the dried nuts. The fried kernels are further ground to a paste in a motorised grinder. The paste is then mixed with a small quantity of water and finally heated to recover the Palm Kernel Oil.

Frequently Asked Questions

Palm kernel oil prices maintained a firm upward trajectory during Q1 2026 across major producing and importing regions. The market was supported by constrained crude palm kernel oil supplies, steady demand from the edible oil sector, growing biodiesel consumption, and active restocking by import-dependent countries. Higher procurement activity and limited feedstock availability further strengthened market sentiment, contributing to sustained price gains throughout the quarter.
Palm kernel oil prices rose as reduced output from major origins limited crude palm kernel oil availability. Stronger restocking in China, firm edible oil demand in India, and steady biofuel-sector buying in Europe and North America added further support. Tight inventories in Malaysia also strengthened market sentiment, especially as exports improved in March.
Palm kernel oil prices are expected to stay firm if crude palm kernel oil supply remains tight in 2026. Production recovery in Indonesia and Malaysia could limit further gains, but biofuel demand, edible oil imports, stock levels, and weather risks will remain important. Indonesia’s biodiesel policy may also reduce exportable supply.
El Niño dryness in the previous season affected palm kernel oil yields with a lag, reducing fresh fruit bunch productivity and limiting crude palm kernel oil output in early 2026. La Niña-related rainfall risks also created uncertainty around harvesting and logistics. This weather-linked production pressure tightened supply and supported firmer palm kernel oil prices in Q1 2026.
Indonesia and Malaysia dominate the global palm kernel oil supply chain, accounting for most production and exports. India, China, Europe, and North America remain major demand centres due to food, edible oil, biofuel, oleochemical, and industrial consumption. Indonesia’s output is expected to remain central to global availability in 2026.
Palm kernel oil prices are highly sensitive to inventory movement in major producing and importing countries. In Q1 2026, limited supply availability and firm restocking demand kept inventories tighter. Malaysia’s March palm kernel oil stocks declined for a third consecutive month, reaching a seven-month low, which supported the upward price trend and buyer urgency.
Palm kernel oil competes most directly with coconut oil and other lauric oils in oleochemical and specialty-fat applications, while broader vegetable-oil market movements in soybean, sunflower, and rapeseed oils can still influence overall edible-oil pricing sentiment. In Q1 2026, palm kernel oil stayed supported as firm demand and tighter supply kept buyers active, despite competition from other edible oils in food and biofuel markets.
Biofuel demand supported palm kernel oil prices by absorbing more supply into fuel blending. Malaysia’s government said it would raise its biodiesel mandate from B10 to B15, with initial production beginning at a B12 blend before B15 production from June 2026. This increased expectations of domestic palm oil use and in turn, supported the market sentiments for palm kernel oil too.
Procurement Resource employs a structured methodology combining primary research, secondary market data, analytical models, and validation processes to assess palm kernel oil prices and trends. Price evaluations incorporate supply-demand dynamics, feedstock movements, trade flows, and value chain analysis, supported by continuous market monitoring to ensure accurate and reliable insights.

About the Author

Pragati Agarwal profile photo

Pragati Agarwal

Senior Business Insights Analyst

Delivering price trend analysis and procurement market insights at Procurement Resource, with expertise in identifying commodity patterns, supporting purchasing strategies, and improving cost efficiency through actionable market intelligence.

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