Global palm oil demand rises amid tighter soybean and sunflower oil supplies
Palm oil exports from Indonesia, Malaysia and Thailand rose 36% year-on-year to 4.5 million tonnes in September 2026, driven by competitive prices. India and China each increased purchases by 300,000 tonnes. Combined 2025-26 shipments reached a three-year high of 45.9 million tonnes.
Global edible oil markets are seeing stronger demand for palm oil, which is becoming increasingly attractive to importers amid tighter supplies of soybean and sunflower oils. In September 2026, combined palm oil exports from Indonesia, Malaysia and Thailand reached 4.5 mln tons, up 1.2 mln tons, or more than 36%, compared with the same month last year. According to Oil World, the increase was primarily driven by improved price competitiveness of palm oil in international markets.
The strongest growth in purchases was recorded in India and China, which significantly increased imports in response to changing price relationships among major edible oils. In September, palm oil shipments to India rose by 300 thsd tons year-on-year to 950 thsd tons, while deliveries to China increased by the same amount to 800 thsd tons. For both markets, these volumes represented multi-month highs.
Demand also strengthened across other destinations. Southeast Asian suppliers increased shipments to African countries, the European Union, the Philippines, Singapore and Vietnam. Palm oil is gaining market share in countries where buyers are seeking to reduce edible oil import costs, particularly amid limited availability of alternative supplies. Its improved price competitiveness is encouraging a shift in demand between different types of edible oils.
During the 2025/26 marketing year, which ran from October to September, the three leading exporting countries shipped a combined 45.9 mln tons of palm oil. This was 2.5 mln tons, or 6%, higher than in the previous season and marked a three-year high. Shipments to China increased particularly sharply, with purchases rising by 31%. Exports to Egypt, Kenya, other African countries, India, the United States, Turkey, Saudi Arabia, the UAE and the EU also exceeded expectations.
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Source : UkrAgroConsult
