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Palm Kernel Oil prices in Indonesia, the highest-cost reporting region given tight domestic supply and near-maximal local absorption, rose 7.5% in Q2 2026 to USD 2,150.00/MT from USD 2,000.00/MT in Q1, extending one of the most sustained rallies of any market tracked in this report. Netherlands prices, reflecting the Rotterdam benchmark, rose 5.7% to USD 2,050.00/MT, while Saudi Arabia posted the sharpest quarterly gain of the four regions, up 17.9% to USD 1,650.00/MT. Globally, the average rose from USD 1,831.26/MT in Q1 to USD 1,980.40/MT in Q2, an 8.1% gain, following a jump of 11.4% in Q1. For H2 2026, a global average of USD 1,700.00-2,300.00/MT is expected, with crude palm kernel oil supply likely to stay tight through the remainder of the year.
Palm Kernel Oil is an edible vegetable oil extracted from the kernel of the oil palm fruit, distinct from crude palm oil, which is derived from the fruit's pulp. It serves widespread applications in food processing, personal care and cosmetics formulations, oleochemical manufacturing, biodiesel and biofuel production, and animal feed through palm kernel expeller. Indonesia and Malaysia dominate the global supply chain, accounting for the large majority of world production and exports, while India, China, Europe, and North America remain major demand centers. Weather-linked production pressure, tied to El Niño dryness in the prior season reducing fresh fruit bunch productivity with a lag, combined with La Niña-related rainfall risks affecting current harvesting and logistics, has tightened crude palm kernel oil supply and sharply strengthened prices across every region tracked in this report. Crude palm kernel oil supply and weather conditions, edible oil and biodiesel demand, and origin-country export policy are what drive prices in this market.
The outlook for Palm Kernel Oil through H2 2026 stays firm if crude palm kernel oil supply remains tight, as expected given the lagged weather effects on fresh fruit bunch productivity. Stronger restocking in China, firm edible oil demand in India, and steady biofuel-sector buying in Europe and North America should continue supporting consumption, with Indonesia's output expected to remain central to global availability through the remainder of the year.
The main upside risk is a further deterioration in Indonesian or Malaysian fresh fruit bunch yields from lagged El Niño effects or La Niña-related harvest disruptions, which could tighten supply and extend the current rally further. The main downside risk is a faster-than-expected recovery in crude palm kernel oil output combined with softer restocking demand in China and India, which would ease the sharp price pressure that has characterized this market since late 2025.
| Region | 2026 Price Range (USD/MT) | Outlook |
| Global Average | 1,700.00 - 2,300.00 | Tight crude palm kernel oil supply keeps this market firm |
| Indonesia | 1,850.00 - 2,450.00 | Domestic supply tightness sustains the highest price |
| Netherlands | 1,800.00 - 2,300.00 | Tight origin exports and vessel scarcity support continued firmness |
| United States | 1,750.00 - 2,250.00 | Freight-driven cost pressure drives continued gains |
| Saudi Arabia | 1,450.00 - 1,900.00 | Sharpest quarterly gains reflect catching up to global tightness |
Indonesian Palm Kernel Oil prices averaged USD 2,150.00/MT in Q2 2026, the highest of any region tracked here, up 7.5% from USD 2,000.00/MT in Q1, as domestic supply tightness continued sustaining this market's premium.
Why did the price of Palm Kernel Oil change in Q2 2026 in Indonesia?
Domestic supply tightened with merchant stocks near minima and sharply limited exportable availability given high local absorption, continuing to keep this market at the top of the range tracked in this report.
Dutch prices, reflecting the Rotterdam benchmark, averaged USD 2,050.00/MT in Q2 2026, up 5.7% from USD 1,939.00/MT in Q1, as tight origin exports and vessel scarcity continued supporting this market.
Why did the price of Palm Kernel Oil change in Q2 2026 in Netherlands?
Origin export levies and reduced Southeast Asian loadings continued materially tightening arrivals, while robust oleochemical and confectionery offtake accelerated draws on Rotterdam stocks.
US prices averaged USD 2,010.00/MT in Q2 2026, up 5.1% from USD 1,913.00/MT in Q1, as freight-driven cost pressure continued driving gains.
Why did the price of Palm Kernel Oil change in Q2 2026 in the United States?
Shipping reroutes continued tightening prompt supply and raising landed costs, with freight-driven cost pressure keeping this market firm even as underlying demand stayed steady.
Saudi Arabian prices, the lowest of the four regions, averaged USD 1,650.00/MT in Q2 2026, up 17.9% from USD 1,400.00/MT in Q1, the sharpest quarterly gain of any region tracked here as this market continued catching up to the broader global tightness.
Why did the price of Palm Kernel Oil change in Q2 2026 in Saudi Arabia?
This market continued catching up sharply to the global tightness already evident across origin and Western import benchmarks, as constrained crude palm kernel oil availability worked through the broader Middle Eastern supply chain.
Indonesian prices rose 17.6% in Q1 2026 to USD 2,000.00/MT from USD 1,700.00/MT in Q4 2025, as El Niño-linked yield reductions sharply tightened domestic supply.
Why did the price of Palm Kernel Oil change in Q1 2026 in Indonesia?
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, with domestic supply tightening as merchant stocks approached minima and 98 percent local absorption sharply limited exportable availability.
Dutch prices rose 5.2% in Q1 2026 to USD 1,939.00/MT from USD 1,843.00/MT in Q4 2025, driven by tighter origin exports.
Why did the price of Palm Kernel Oil change in Q1 2026 in Netherlands?
The Palm Kernel Oil Price Index rose on tighter origin exports, with origin export levies and reduced Southeast Asian loadings materially tightening arrivals, while war-risk freight surcharges and insurance costs increased import parity and contributed to higher Rotterdam landed costs.
US prices rose 5.4% in Q1 2026 to USD 1,913.00/MT from USD 1,815.00/MT in Q4 2025, driven by freight cost pressure.
Why did the price of Palm Kernel Oil change in Q1 2026 in the United States?
The Palm Kernel Oil Price Index rose driven by freight, with the average price for the quarter reflecting shipping reroutes that tightened prompt supply urgently and raised landed costs across the domestic market.
Saudi Arabian prices rose 21.7% in Q1 2026 to USD 1,400.00/MT from USD 1,150.00/MT in Q4 2025, the sharpest regional move of the quarter.
Why did the price of Palm Kernel Oil change in Q1 2026 in Saudi Arabia?
Palm kernel oil prices maintained a firm upward trajectory during Q1 2026 across major producing and importing regions, supported by constrained crude palm kernel oil supplies, steady demand from the edible oil sector, and growing biodiesel consumption, with this market posting the sharpest gains as it caught up to the broader global tightness.
Global Palm Kernel Oil prices climbed steadily and then sharply across every quarter tracked in this report, accelerating through the second half of 2025 and into 2026 as El Niño-linked fresh fruit bunch yield reductions, tight Malaysian inventories, and firm restocking demand from China and India combined to push prices to their highest levels of the period covered here.
| Quarter | Price (USD/MT) | QoQ Change | Direction |
| Q2 2026 | 1,980.40 | +8.1% | ↑ Rising |
| Q1 2026 | 1,831.26 | +11.4% | ↑ Rising |
| Q4 2025 | 1,643.78 | +11.9% | ↑ Rising |
| Q3 2025 | 1,468.80 | +8.8% | ↑ Rising |
| Q2 2025 | 1,350.00 | - | — Stable |
| Q3 2026 | In Progress | - | — In Progress |
Palm Kernel Oil staged one of the most sustained rallies of any market covered in this report through 2025, with prices climbing more than 20 percent in every region as El Niño-linked yield reductions, tight Malaysian inventories, and firm restocking demand from China and India combined to push this market steadily higher, a structural tightening that continued extending sharply into 2026.
Indonesian prices surged from about USD 1,400.00/MT in Q1 2025 to USD 1,700.00/MT by Q4, a gain of roughly 21.4%, before the continued sharp climb that followed into 2026.
Dutch Rotterdam benchmark prices surged from about USD 1,500.00/MT in Q1 2025 to USD 1,843.00/MT by Q4, up roughly 22.9%, tracking tightening origin exports through the year.
US prices surged from about USD 1,450.00/MT in Q1 2025 to USD 1,815.00/MT by Q4, a gain of roughly 25.2%, tracking freight-driven cost pressure through the year.
Saudi Arabian prices surged from about USD 900.00/MT in Q1 2025 to USD 1,150.00/MT by Q4, up roughly 27.8%, the strongest annual increase of the four regions, before accelerating even further in early 2026.
Expert Market Research: Your Source for Real-Time Palm Kernel Oil Price Intelligence
Expert Market Research tracks Palm Kernel Oil prices continuously across every major producing and consuming region, combining crude palm kernel oil supply and weather condition data, edible oil and biodiesel demand signals, and origin-country export policy trends into a single, regularly updated view of the market. Our team can help your procurement function benchmark current offers, plan purchases around the sustained rally covered in this report, and build a defensible view of where this essential edible and oleochemical oil is headed next. Reach out to our team for a tailored briefing or a deeper look at any of the regional markets covered here.
*While we strive to always give you current and accurate information, the numbers depicted on the website are indicative and may differ from the actual numbers in the main report. At Expert Market Research, we aim to bring you the latest insights and trends in the market. Using our analyses and forecasts, stakeholders can understand the market dynamics, navigate challenges, and capitalize on opportunities to make data-driven strategic decisions.*
It serves widespread applications in food processing, personal care and cosmetics formulations, oleochemical manufacturing, biodiesel and biofuel production, and animal feed through palm kernel expeller.
The Q2 2026 global average was USD 1,980.40/MT, ranging from USD 1,650.00/MT in Saudi Arabia to USD 2,150.00/MT in Indonesia.
The global average rose from USD 1,643.78/MT in Q4 2025 to USD 1,831.26/MT in Q1 2026 and then to USD 1,980.40/MT in Q2, extending a sustained rally that has pushed prices up more than 45 percent since early 2025.
El Niño dryness in the prior season affected yields with a lag, reducing fresh fruit bunch productivity and limiting crude palm kernel oil output, while tight Malaysian inventories and firm restocking demand from China and India compounded the supply tightness.
The global average is expected in the USD 1,700.00-2,300.00/MT range, with prices likely to stay firm if crude palm kernel oil supply remains tight.
Saudi Arabia holds the lowest cost among the regions tracked here despite posting the sharpest recent gains, while Indonesia carries the highest cost given domestic supply tightness and near-maximal local absorption.
This report is updated monthly. For real-time pricing intelligence, connect with the Expert Market Research team.
Crude palm kernel oil supply and weather conditions, edible oil and biodiesel demand, and origin-country export policy.
Indonesia and Malaysia dominate the global supply chain, accounting for the large majority of world production and exports, with India, China, Europe, and North America serving as major demand centers.
Buyers can monitor Indonesian and Malaysian weather and yield conditions given their outsized influence on this market, time forward purchases around the quarterly breakdowns in this report, and benchmark supplier quotes against the tracked price ranges given the scale of the ongoing rally.
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