The Palm Oil Price Trend moved upward across all monitored markets during Q2 2026, supported by tighter regional supply and firm biodiesel demand. Crude Palm Oil values increased at major producing origins in Malaysia and Indonesia, while import markets also saw higher prices because of rising freight costs and shipping disruptions. The Palm Oil Prices remained firm through most of the quarter, although June brought a correction as buyers became more cautious after the earlier rise.
For businesses that use palm oil in food products, oleochemicals, personal care products, and biodiesel-related applications, keeping track of the Palm Oil Price Trend is important. Even moderate changes in palm oil costs can affect purchasing decisions, production costs, inventory planning, and margins.
Palm Oil Price Trend Overview for Q2 2026
The second quarter of 2026 was generally positive for palm oil prices. The market started the quarter with firm fundamentals and continued to move higher during April and May. Tight regional availability was one of the main reasons behind the increase.
Another important factor was biodiesel demand. Strong demand from the biodiesel sector supported crude palm oil values at the producing origin. At the same time, regular demand from edible oil and oleochemical buyers kept the market active.
The increase was not limited to producing countries. Import markets also recorded noticeable gains. Higher Malaysian export prices were passed into international markets, while increased freight costs added another layer of pressure in several destinations.
The UAE and India recorded the strongest quarterly increases, with gains of around 13% and 11%, respectively. The USA, China, and Japan recorded increases of around 8%. This shows how changes at the origin can gradually affect buyers in different parts of the world.
However, the market changed direction in June. After prices had moved higher during the quarter, buyers reduced their procurement activity and waited for clearer market signals. As a result, Palm Oil Prices corrected across all monitored markets.
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Malaysia Palm Oil Price Trend
Malaysia remained an important reference point for the global palm oil market during Q2 2026. The Palm Oil Price Trend in Malaysia increased by around 8% during the quarter.
The main support came from tight regional supply and firm biodiesel demand. These conditions helped push Crude Palm Oil export values higher at FOB Port Kelang.
Demand from edible oil and oleochemical buyers also remained steady. When demand remains consistent while supply becomes tighter, buyers generally have less room to negotiate lower prices. This helped keep the Palm Oil Price elevated through most of the quarter.
However, June brought some relief to buyers. Malaysian Palm Oil Prices declined by around 2% during the month as buyers moderated procurement following the earlier price increase.
This June correction does not necessarily mean that the broader market trend had completely changed. Instead, it reflected a period of more cautious buying after prices had already increased substantially during the quarter.
Indonesia Palm Oil Price Trend
Indonesia also experienced an upward movement during Q2 2026. The Palm Oil Price Trend increased by around 7% during the quarter.
As in Malaysia, tighter regional supply and firm biodiesel demand provided support to Crude Palm Oil values. FOB Jakarta export prices gradually moved higher during the quarter.
Indonesia's market also benefited from steady demand from edible oil and oleochemical buyers. These sectors continue to be important consumers of palm oil, meaning that changes in their buying activity can have a direct influence on the market.
In June, Indonesian Palm Oil Prices corrected by around 2%. Buyers became more careful after the strong movement seen earlier in the quarter. This reduction in buying pressure resulted in a moderate monthly decline.
From a procurement perspective, the Indonesian market showed why businesses should monitor both quarterly and monthly movements. A market can remain stronger on a quarterly basis while still experiencing short-term corrections.
USA Palm Oil Price Trend
The USA recorded an increase of around 8% in the Palm Oil Price Trend during Q2 2026.
Unlike producing markets, the USA also had to deal with the impact of freight costs. Firm Malaysian FOB prices were passed through into CIF Houston import prices, while higher freight charges added additional pressure.
This is important for import-dependent buyers. The final price paid by an importer is not determined only by the commodity price at origin. Shipping costs can significantly influence the delivered cost.
Demand from edible oil and biodiesel buyers remained steady in the USA, helping keep the Palm Oil Prices elevated during most of the quarter.
In June, prices declined by around 2%. The correction was linked to more moderate procurement activity as buyers adjusted their purchasing after the earlier run-up.
China Palm Oil Price Trend
China's Palm Oil Price Trend increased by around 8% in Q2 2026.
CIF Shanghai prices were influenced by the increase in Malaysian FOB prices. Higher freight costs on the route also contributed to the increase in delivered prices.
China has demand from both edible oil and oleochemical applications, and steady buying from these sectors provided support during the quarter.
The Palm Oil Prices in China remained firm through much of Q2, but the market saw a correction in June. Prices fell by around 3% during the month as buyers moderated procurement.
The June decline highlights an important feature of commodity markets: prices can move strongly in one direction when buyers are active, but once procurement slows, short-term corrections can happen quickly.
Japan Palm Oil Price Trend
Japan also recorded an approximately 8% increase in its Palm Oil Price Trend during Q2 2026.
The increase in Malaysian FOB prices was reflected in CIF Tokyo valuations. Rising freight charges also contributed to the higher delivered cost.
Demand from edible oil and oleochemical buyers remained steady, helping keep prices supported during the quarter.
In June, Japanese Palm Oil Prices declined by around 2%. Buyers reduced procurement after the earlier increase, leading to a moderate correction.
For Japanese buyers, monitoring both origin prices and freight movements remains important because changes in either factor can influence the final import cost.
UAE Palm Oil Price Trend
The UAE experienced the strongest quarterly increase among the monitored import markets. The Palm Oil Price Trend increased by around 13% during Q2 2026.
The increase came from a combination of higher Malaysian FOB prices and significantly higher freight costs. These factors pushed CIF Sharjah prices toward peak levels during the quarter.
Steady demand from edible oil and oleochemical buyers provided additional support. As a result, the Palm Oil Prices in the UAE remained particularly firm compared with several other markets.
Despite the strong quarterly gain, June saw a correction of around 1%. Buyers moderated their procurement after prices had moved to higher levels.
The UAE example shows how freight can make a major difference to import-market pricing. Even when the underlying commodity price rises moderately, shipping costs can make the final delivered price increase much more quickly.
India Palm Oil Price Trend
India recorded one of the largest quarterly gains in the monitored markets. The Palm Oil Price Trend increased by around 11% during Q2 2026.
Malaysian FOB prices moved higher and were reflected in CIF Nhava Sheva import valuations. Interestingly, freight charges on this route eased during the quarter, which helped limit some of the additional pressure on Indian import prices.
Despite this, the overall Palm Oil Prices remained elevated because of firm origin prices and steady demand from edible oil and oleochemical buyers.
In June, Indian prices corrected by around 1% as buyers moderated procurement.
For Indian buyers, this movement shows the importance of looking beyond just the international commodity price. Import costs can also depend on freight, buying timing, inventory levels, and local market conditions.
Key Factors Affecting Palm Oil Prices in Q2 2026
Several factors influenced the CPO Price Trend during the quarter.
First, regional supply remained relatively tight. When availability becomes less comfortable, sellers generally maintain stronger price expectations.
Second, biodiesel demand provided important support to the market. Firm demand from this sector helped maintain Crude Palm Oil values at producing origins.
Third, demand from edible oil and oleochemical buyers remained steady. These applications create a broad demand base for palm oil and helped prevent a major decline during most of the quarter.
Freight was another major factor, particularly for import markets. Higher shipping costs increased delivered prices in several destinations and made the increase in origin prices more noticeable for buyers.
Finally, buyer behavior played a major role in June. After the strong Q2 increase, many buyers moderated procurement. This reduced immediate demand and resulted in corrections across the monitored markets.
CPO Price Trend and Market Movement
The CPO Price Trend remained positive through most of Q2 2026. Malaysia and Indonesia, as major producing origins in the monitored markets, both recorded quarterly increases.
The CPO Prices were supported by the combination of supply conditions and biodiesel demand. From there, higher origin prices moved into international import markets.
The difference between markets was mainly determined by freight conditions and local buying patterns. This explains why some import markets, particularly the UAE and India, recorded stronger quarterly increases than the producing origins.
For businesses following the CPO Prices, it is therefore useful to monitor both FOB origin prices and CIF destination prices. Looking at only one side of the market can give an incomplete picture of actual procurement costs.
Palm Oil Price Chart and Palm Oil Price Index
The Palm Oil Price Chart for Q2 2026 would show a clear upward movement through April and May, followed by a correction in June.
At the origin level, Malaysia increased by around 8% and Indonesia by around 7%. Import markets recorded stronger movements in some cases, particularly the UAE and India.
The Palm Oil Price Index remained supported during the quarter because demand from edible oil, oleochemicals, and biodiesel remained steady.
For procurement teams, a price chart is useful because it makes it easier to identify whether a price movement is gradual or sudden. A price index can also help compare market direction over time and support better purchasing decisions.
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Palm Oil Price Forecast
Looking ahead, the Palm Oil Price Trend will continue to depend on the balance between supply, biodiesel demand, edible oil consumption, oleochemical demand, and freight conditions.
The June correction suggests that buyers became more cautious after the strong Q2 increase. If procurement remains moderate, prices could experience further short-term adjustments.
At the same time, tight regional supply and firm biodiesel demand remain important supportive factors. If these conditions continue, they could limit the depth of any price correction.
Freight costs will also remain important for import markets. A reduction in shipping pressure could help lower delivered prices even if origin prices remain firm. On the other hand, renewed freight disruption could quickly add pressure to CIF prices.
Therefore, businesses should not look at the CPO Price Trend only from a short-term perspective. Regular monitoring of origin prices, freight, demand, and buying activity can provide a more balanced view of the market.
The Palm Oil Price Trend in Q2 2026 was broadly upward across all monitored markets. Malaysia and Indonesia recorded firm gains as tighter regional supply and strong biodiesel demand supported Crude Palm Oil values. Import markets saw additional pressure from freight costs, with the UAE and India recording the largest quarterly increases.
The Palm Oil Prices then corrected in June as buyers moderated procurement following the earlier run-up. China recorded the largest June correction among the monitored markets at around 3%, while most other markets declined by around 1–2%.
Overall, the quarter showed how supply, demand, biodiesel consumption, and freight costs can work together to influence the global palm oil market. For manufacturers, importers, traders, and procurement teams, following the CPO Prices, CPO Price Trend, Palm Oil Price Chart, and Palm Oil Price Index can help provide a clearer understanding of market direction and support better purchasing decisions.
About Price-Watch™
Price Watch™ is an India-based, independent raw material price reporting agency that provides real-time price forecasts and data-driven insights into global raw material markets. Price Watch™ specializes in tracking raw material prices, analyzing market trends, and delivering timely updates on plant shutdowns, supply disruptions, capacity expansions, and demand-supply dynamics. The Price Watch™ platform empowers manufacturers, traders, and procurement professionals to make faster, smarter decisions. Leveraging AI-powered forecasting and over a decade of historical data, Price Watch™ transforms market volatility into actionable opportunity.
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