Global palm oil trade slowed in April–May

Global palm oil trade slowed slightly in April and May 2026 after exceptionally strong export volumes in the first quarter, according to Oil World. The slowdown was driven by seasonal declines in production across Southeast Asia and rising domestic palm oil consumption for biodiesel production.

Combined palm oil exports from Indonesia, Malaysia, and Thailand totaled 6.31 mln tons in April–May, compared with 6.40 mln tons during the same period last year. Indonesia increased its exports to 3.70 mln tons, while shipments from Malaysia declined to 2.40 mln tons and exports from Thailand fell to 0.21 mln tons.

One of the key market trends was a sharp decline in palm oil imports by India, which fell to 0.85 mln tons from 1.16 mln tons a year earlier. Imports also decreased in Pakistan and the European Union as buyers relied on previously accumulated inventories, temporarily reducing the need for new purchases.

At the same time, demand remained strong in China, the Philippines, South Korea, the United States, Egypt, Kenya, several other African countries, and Russia. During January–May, total exports from the three leading producers reached 17.51 mln tons, up from 15.71 mln tons in the same period of 2025.

Analysts expect the market to receive additional support in the second half of the year as seasonal demand strengthens, particularly in India ahead of the festive season. Producers are also expected to build inventories during the peak production period rather than maximize exports, which could tighten global supplies and provide further support for palm oil prices.

Tags: palm oil