Palm Oil Price Trend and Forecast

Palm Oil Regional Price Overview

Get the latest insights on price movement and trend analysis of Palm Oil in different regions across the world (Asia, Europe, North America, Latin America, and the Middle East & Africa).

Palm Oil Price Trend for Q1 of 2025

Asia

In the first quarter of 2025, palm oil prices in Asia showed considerable fluctuations due to varied supply and demand dynamics. Indonesia, the world’s largest producer, faced a reduced export availability as the government increased its biodiesel mandate, directing more palm oil for domestic consumption. This policy shift pushed global prices higher. However, Indonesia's production is expected to rise by approximately 2.2 million tonnes due to favorable weather conditions, which could somewhat counterbalance the price increase.
 

Palm Oil Price Chart

Please Login or Subscribe to Access the Palm Oil Price Chart Data
 

Malaysia, the second-largest producer, struggled with stagnant growth due to labor shortages and aging plantations, limiting its exports and contributing to higher regional prices. Meanwhile, India, the world’s largest importer of palm oil, experienced a significant drop in palm oil imports during January 2025, reaching their lowest levels in 14 years. Indian refiners shifted to cheaper alternatives like soy and sunflower oils due to negative refining margins for palm oil. This change significantly impacted the demand for palm oil in Asia, slightly reducing its market share despite the strong demand from other regions.

Europe

In Europe, palm oil prices in Q1 2025 remained relatively steady despite fluctuating global market conditions. The key influencing factors were the continent’s complex regulatory landscape and the increasing competition from other vegetable oils. The European Union's stricter environmental regulations, particularly the EU Deforestation Regulation (EUDR), continued to put pressure on palm oil imports. This regulatory framework has made sourcing palm oil more expensive, particularly for countries with sustainability concerns.

Furthermore, the price of palm oil remained above its historical levels due to reduced global supply, particularly from major producers like Indonesia, which decreased exports in favor of meeting domestic biodiesel demands. As demand from Europe’s industrial sector remained moderate, European buyers began to look for cheaper alternatives like sunflower and rapeseed oil, which slightly dampened palm oil's market share in the region.

North America

In North America, palm oil prices experienced moderate volatility in Q1 2025. U.S. imports of palm oil showed resilience, driven by demand from the food and biodiesel industries. However, competition from lower-priced oils, particularly soy and canola oil, limited palm oil’s market share and kept prices somewhat stable. The continued growth in biodiesel mandates in the U.S. added a layer of support to palm oil demand, but the overall price increase was tempered by abundant supplies of alternative oils. As such, palm oil prices in North America showed modest increases, following broader global trends but with limited volatility.

Analyst Insight

According to Procurement Resource, the palm oil price trend is expected to stabilize in the near future after showing bullish movements this quarter, as the availability of the commodity is likley to expectedly improve.

Procurement Resource provides latest prices of Palm Oil. Each price database is tied to a user-friendly graphing tool dating back to 2014, which provides a range of functionalities: configuration of price series over user defined time period; comparison of product movements across countries; customisation of price currencies and unit; extraction of price data as excel files to be used offline.