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Palm oil is a vegetable oil obtained from palm oil and is used in a variety of consumer goods, from processed foods to biofuels. Indonesia is a major palm oil producer, with a record 43.5 million tonnes of palm oil produced in 2020/2021. Indonesia and Malaysia are also the world's largest palm oil exporters, with total exports of more than 28.8 million and 17 million tons in 2020/2021, respectively. India imports the most palm oil of any country, with an import value of around $5.5 billion for 2020.

After five sessions of gains, Malaysian palm oil futures fell about 2.0% to below MYR 3,870 per tonne. The drop came after competing edible oils on the Chicago Board of Trade and the Dalian Exchange showed signs of weakening. In important buyer China, traders were nonetheless worried about weak manufacturing and services activity despite Beijing's assistance measures amid rising global trade barriers, which further strained sentiment ahead of May PMI data. Prices were close to a seven-month low, reflecting ongoing concerns about growing output and stocks, and contracts were headed for a third consecutive month of declines, down more than 1% so far. Exports, on the other hand, appeared to be improving; cargo surveyors estimated that shipments increased by 7.3% to 11.6% between May 1 and May 25. Demand is anticipated to increase in India, the country that consumes the most palm oil worldwide, as refiners replenish stocks as a result of robust output in Malaysia and Indonesia and declining prices make palm oil less expensive than soybean oil.

Worldwide palm oil consumption: 73.87 million tons. Worldwide palm oil production: 75.5 million tons