- Global RBD Palm Oil prices moved upward during Q1’26 as tight Southeast Asian supply conditions and improving edible oil demand supported global market sentiment.
- Feedstock availability remained firm due to reduced production in major exporting countries, while elevated freight and logistics costs linked to the Iran war and Strait of Hormuz disruptions added further pricing pressure.
- Downstream demand improved across food processing, cooking oil, and biofuel sectors, with restocking activity and biodiesel blending demand supporting consumption trends.
Asia
RBD Palm Oil prices in Asia followed a firm upward trend during Q1’26 amid tight feedstock availability and stronger downstream demand. The feedstock prices increased by ~6% between January and March. Tight inventories in Indonesia and Malaysia, along with Indonesia’s continued B40 biodiesel mandate, reduced export availability and supported global prices. Meanwhile, disruptions around the Strait of Hormuz increased marine freight and insurance costs, tightening edible oil trade flows across Asia. Demand from food manufacturing and routine restocking activity remained firm despite elevated prices.
Europe
European RBD Palm Oil prices remained firm during Q1’26 as elevated overseas palm oil values and higher freight costs increased import expenses across the region. Tight supply conditions in Southeast Asia and logistical disruptions linked to Middle Eastern shipping routes supported market sentiment throughout the quarter. Demand from food processing and biofuel sectors remained stable, while cautious procurement strategies limited sharper price increases. Regional buyers also faced elevated container and transportation costs due to rerouted shipments and global freight volatility.
North America
In North America, RBD Palm Oil prices moved upward during Q1’26, supported by firm global edible oil fundamentals and stable downstream demand. Higher international freight and transportation costs linked to geopolitical tensions increased procurement expenses for imported vegetable oils. Demand from foodservice, processed food, bakery, and industrial applications remained steady, while supply-side tightness in global palm oil markets continued influencing regional pricing trends throughout the quarter.