Palm Oil Price Trend

Palm Oil Prices December 2023

In the fourth quarter of 2023, the price of palm oil in Malaysia reached 810 USD/MT by December. In October, palm oil prices declined alongside a surplus inventory buildup, indicating predictions of increased production compared to exports. However, November saw a significant price rise driven by factors like the El Nino phenomenon, increased food industry consumption, and sustained high crude oil prices. But the prices again declined by December due to slowing exports, particularly from key importing nations like India, leading to higher inventories. This downturn was typical of the seasonal dip in global vegetable oil demand, prompting Malaysia to focus on clearing stocks at lower costs by year-end 2023.

Palm Oil Price Trend, Market Analysis, and News

IMARC’s newly published report, titled “Palm Oil Pricing Report 2024: Price Trend, Chart, Market Analysis, News, Demand, Historical and Forecast Data,” offers an in-depth analysis of palm oil pricing, covering an analysis of global and regional market trends and the critical factors driving these price movements.

It encompasses an in-depth review of spot price of palm oil at major ports, a breakdown of prices including Ex Works, FOB, and CIF, alongside a region-wise dissection of palm oil price trend across North America, Europe, Asia Pacific, Latin America, the Middle East and Africa.

The report examines the elements influencing palm oil price fluctuations, such as changes in raw material costs, supply-demand dynamics, geopolitical factors, and industry-specific developments. Additionally, it integrates the latest market news, providing stakeholders with up-to-date information on market shifts, regulatory changes, and technological advancements, thereby offering a comprehensive overview that aids in strategic decision-making and forecasting.

Palm Oil Market Analysis

The global palm oil market size reached US$ 55.8 Billion in 2023. By 2032, IMARC Group expects the market to reach US$ 80.7 Billion, at a projected CAGR of 3.50% during 2023-2032.

• One of the primary uses of palm oil is in the food industry, where it serves as a key ingredient in numerous processed foods. Its high stability and neutral flavor make it ideal for frying, baking, and shortening, bolstering the market growth.
• Similarly, palm oil is used as a critical ingredient in many snack foods, such as cookies, crackers, and chips, where it enhances texture and extends shelf life due to its resistance to rancidity, thus expanding the market reach.
• Another significant factor contributing to the market growth is the surging product utilization in the manufacturing of personal care products. Its natural emollient properties make it an excellent moisturizer, commonly found in soaps, lotions, and creams. Besides this, in soap production, palm oil contributes to the hardness and lather quality, providing a cleansing yet gentle effect on the skin.
• Additionally, palm oil's presence in shampoos and conditioners helps to nourish and hydrate hair, giving it a smooth and shiny appearance. In addition to this, its wide availability and cost-effectiveness make palm oil a staple ingredient in the personal care industry, bolstering the market growth.
• Palm oil possesses several distinctive features that contribute to its widespread use. It is a highly stable oil, resistant to oxidation and rancidity, which makes it suitable for high-temperature cooking and extends the shelf life of food products, aiding in market expansion.
• Moreover, the cost-effectiveness of palm oil compared to other vegetable oils is acting as another growth-inducing factor. Its lower production costs and high yield efficiency result in a competitively priced product, making it an appealing choice for food manufacturers and other industries.
• Besides this, palm oil is a key feedstock for biodiesel production due to its high oil content and renewability. Consequently, the push towards renewable energy sources and reducing reliance on fossil fuels is boosting the demand for palm oil in the biofuel sector.
• Furthermore, palm oil is rich in vitamin E and beta-carotene, which provide antioxidant benefits. These nutritional properties contribute to its inclusion in dietary supplements and functional foods, driving demand among health-conscious consumers.
• Apart from this, palm oil's high yield per hectare compared to other vegetable oils makes it a highly efficient and economically viable crop, supporting its extensive production and use globally, which, in turn, is impelling the market growth.

Palm Oil News

The report covers the latest developments, updates, and trends impacting the global palm oil market, providing stakeholders with timely and relevant information. This segment covers a wide array of news items, including the inauguration of new production facilities, advancements in palm oil production technologies, strategic market expansions by key industry players, and significant mergers and acquisitions that impact the palm oil price trend.

Latest developments in the palm oil industry:

• In March 2024, India's first integrated oil palm processing unit by 3F Oil Palm commenced commercial operations in Roing, Lower Dibang Valley, Arunachal Pradesh. This factory advances Mission Palm Oil and marks a crucial step towards self-reliance in edible oils, driven by the National Mission on Edible Oils - Oil Palm (NMEO-OP). The facility aims to boost local agriculture, benefiting farmers and reducing dependency on imported edible oils.

Product Description

Palm oil is an edible vegetable oil derived from the fruit of the oil palm tree, primarily the species Elaeis guineensis. It is one of the most widely produced and consumed oils globally due to its high yield and versatile properties. The oil is extracted from both the pulp of the fruit and the kernel or seed.

Palm oil has a broad range of applications across industries due to its versatility and cost-effectiveness. In the food industry, it is a common ingredient in many processed foods, such as margarine, ice cream, and baked goods, due to its semi-solid state at room temperature and resistance to oxidation. Beyond food, palm oil is also used in the production of personal care products, including soaps, shampoos, and cosmetics, due to its moisturizing properties and ability to create a rich lather.

Regional Coverage

The report provides a detailed analysis of the palm oil market across different regions, each with unique pricing dynamics influenced by localized market conditions, supply chain intricacies, and geopolitical factors. This includes price trends, price forecast and supply and demand trends for each region, along with spot prices by major ports. The report also provides coverage of ex-works, FOB, and CIF prices, as well as the key factors influencing the palm oil price trend. 

Global Palm Oil Price

The report offers a holistic view of the global palm oil pricing trends in the form of palm oil price charts, reflecting the worldwide interplay of supply-demand balances, international trade policies, and overarching economic factors that shape the market on a macro level. This comprehensive analysis not only highlights current price of palm oil but also provides insights into historical price trends, enabling stakeholders to understand past fluctuations and their underlying causes.

The report also delves into price forecast models, projecting future price movements based on a variety of indicators such as expected changes in supply chain dynamics, anticipated policy shifts, and emerging market trends. By examining these factors, the report equips industry participants with the necessary tools to make informed strategic decisions, manage risks, and capitalize on market opportunities. Furthermore, it includes a detailed palm oil demand analysis, breaking down regional variations and identifying key drivers specific to each geographic market, thus offering a nuanced understanding of the global pricing landscape.

Europe Palm Oil Price

In Q4 2023, palm oil prices in Europe mirrored North American trends, with the market displaying pronounced bullish tendencies. This optimism was driven by increased demand from the food and personal care industries, resulting in ongoing transactions and tight inventory levels. Export hurdles, such as shipping line diversions around the Red Sea, led to order cancellations and delays. Limited palm fruit availability and higher biodiesel consumption in Malaysia and Indonesia caused production halts, further tightening supply.

This analysis can be extended to include detailed palm oil price information for a comprehensive list of countries.

North America Palm Oil Price

Throughout Q4 2023, palm oil prices saw an increase driven by rising global demand, geopolitical tensions, and trade disruptions, particularly in the United States. Inventory shortages compelled market players to adjust quotations, increasing import momentum. Supply chain disruptions affected market demand. Geopolitical tensions and trade disruptions, such as rerouting shipping routes, increased shipping expenses, cancellations, and delays.

Specific palm oil historical data within the United States and Canada can also be provided.

Middle East and Africa Palm Oil Price

The report explores the palm oil pricing trends in the Middle East and Africa, considering factors like regional industrial growth, the availability of natural resources, and geopolitical tensions that uniquely influence market prices.

In addition to region-wise data, information on palm oil prices for countries can also be provided.

Asia Pacific Palm Oil Price

Throughout Q4 2023, the APAC palm oil market faced challenges, notably high sensitivity to external oil futures market fluctuations, driving frequent price increases. Rising domestic biodiesel demand, particularly in Malaysia, and global consumption in emerging markets bolstered palm oil usage, straining supply and elevating prices. Limited inventories, compounded by input cost hikes, exacerbated the upward price trend. Supply constraints intensified due to adverse weather conditions in Malaysia and other Southeast Asian producers, reducing output.

This palm oil price analysis can be expanded to include a comprehensive list of countries within the region.

Latin America Palm Oil Price

The analysis of palm oil prices in Latin America provides a detailed overview, reflecting the unique market dynamics in the region influenced by economic policies, industrial growth, and trade frameworks.

This comprehensive review can be extended to include specific countries within the region.

Report Coverage

Key Benefits for Stakeholders:

• IMARC’s report presents a detailed analysis of palm oil pricing, covering global and regional trends, spot prices at key ports, and a breakdown of Ex Works, FOB, and CIF prices.
• The study examines factors affecting palm oil price trend, including raw material costs, supply-demand shifts, geopolitical impacts, and industry developments, offering insights for informed decision-making.
• The competitive landscape review equips stakeholders with crucial insights into the latest market news, regulatory changes, and technological advancements, ensuring a well-rounded, strategic overview for forecasting and planning.
• IMARC offers various subscription options, including monthly, quarterly, and biannual updates, allowing clients to stay informed with the latest market trends, ongoing developments, and comprehensive market insights. The palm oil price charts ensure our clients remain at the forefront of the industry.