Global palm oil exports fall to 12.07 million tonnes in second quarter

Seasonal June increase fails to reverse annual decline

Global palm oil exports remained below the previous year's level in the second quarter of 2026 despite a seasonal increase in June. Oil World data reported by ZOL show that shipments in April-June fell by 500,000 tonnes year on year to 12.07 million tonnes.

The result indicates that the June improvement was not sufficient to offset weaker trade earlier in the quarter. The decline was spread across the three producing countries identified in the report, although the scale varied considerably. Indonesia remained the largest supplier, exporting 6.45 million tonnes, compared with 6.53 million tonnes in April-June 2025. Malaysia's shipments decreased to 3.63 million tonnes from 3.77 million tonnes, while Thailand recorded the sharpest proportional contraction, to 260,000 tonnes from 600,000 tonnes.

Alternative vegetable oils gain market share

Palm oil lost part of its market share to competing vegetable oils during the period. Combined global exports of soybean, sunflower and rapeseed oils rose by 8% year on year to 10.4 million tonnes, according to the report. That increase approached the scale of the palm oil trade itself and gave buyers more supply options across the edible oil complex.

The figures point to stronger competition between oils rather than a uniform decline in internationally traded vegetable oil demand. For processors and importers, substitution depends on relative prices, technical requirements and availability, but the export data show that soybean, sunflower and rapeseed oils collectively captured additional volumes in April-June. Palm oil exporters consequently faced both lower shipments from major origins and a larger competing supply pool.

India accounts for the largest demand-side reduction

India registered the largest decline in palm oil deliveries among the destinations listed. Shipments to the country fell by 545,000 tonnes to 1.57 million tonnes. Deliveries to China declined by 94,000 tonnes to 1.29 million tonnes. Together, these reductions weighed heavily on the quarterly result because India and China are major destinations for internationally traded vegetable oils.

The downturn was not universal. Shipments increased to the United States, South Korea, the Philippines, Turkey and several African countries, although the source did not provide volumes for those gains. Oil World expects market conditions to tighten over the medium term as global production growth slows and demand from biodiesel producers rises, particularly in Indonesia. That combination could reduce export availability even if consumption strengthens. Traders and processors will therefore be watching whether the second-quarter loss of market share persists, and how Indonesia balances domestic biodiesel demand against sales to overseas customers.