The main areas of palm oil production, and the historical development of interregional trading links are examined. Analysis of price variations at and between major palm oil markets reveals the seasonal character of commodity trading and points to the nature of the relationship between market‐places. The volume, value and spatial pattern of palm oil flows are assessed. Despite serious deficiencies in data provision and collection procedures it is concluded that it is largely through the examination of commodity movements and the role of traders in supply and demand that a clear understanding of the functional integration of markets can be gained.