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Crude Palm Kernel Oil Price Trend

About: Crude Palm Kernel Oil is known as an edible plant oil that is extracted from the kernel of the oil palm Elaeis guineensis. It should not be confused with the other two edible oils derived from palm fruits: palm oil, that is derived from the pulp of the oil palm fruit, and the coconut oil, that is derived from the kernel of the coconut.

Crude Palm Kernel Oil Regional Price Trend & Analysis

Get the latest insights on price movement and trend analysis of Crude Palm Kernel Oil in different regions across the world (Asia, Europe, North America, Latin America, and the Middle East & Africa).  

Crude Palm Kernel Oil Price Trend for the Second Quarter of 2022 

Asia 

Crude palm kernel oil prices (CPKO) recorded a new peak at the beginning of the said quarter. The supply disruptions in the black sea region and export restrictions caused the prices of vegetable oils to inflate globally. With Indonesia banning palm oil exports in April, CPKO prices soared.  

However, the restrictions were lifted after a month, and the prices recorded a downward trend. The prices of Malaysian crude palm kernel oil went from 1811.19 USD/MT in May 2022 to 1554.50 USD/MT in June 2022, recording a total 14.17% decrease. 

Latin America 

In line with the Asian market, the price trends for CPKO followed a similar pattern, with the prices soaring around April due to supply chain disruptions and export ban and eased towards the end of the said quarter. 

For the First Quarter of 2022

Asia

Crude palm oil (CPO) prices were projected to remain elevated in the short term, exceeding CGS-2022 CIMB's average CPO price projection of 4,100 RM/MT. On March 2, the Malaysia-delivered CPO price reached a record high of 8,076 RM/MT, partly owing to the Russia-Ukraine crisis. With the current state of the crisis and its effect on the worldwide supply of sunflower oil, particularly to the EU and India, demand for palm oil is projected to surge in the next quarter.

Latin America

The average price of a tonne was 685.31 USD in the first quarter of 2022 in Brazil.

For the Fourth Quarter of 2021

Asia

Despite a labour shortage, Malaysian CPO output increased considerably in November 2021 compared to the previous year. Following a rise to 1,300 USD/MT in November 2021, Malaysian benchmark CPO prices are expected to fall in 2022 due to a sharp increase in output. Meanwhile, Indonesia's monthly palm oil production continued to weaken in August-October 2021, compared to a year earlier, due to the lingering effects of poor fertiliser use and upkeep.

CPO prices were estimated to be at 4,700-4,900 MR/MT in December 2021. The prices are expected to rise in January and February 2022 before dropping to 4,600 MR/MT ($1,100.2) from March 2022 onwards.

The availability of palm oil may not improve until the first quarter of 2022, as Malaysia's manpower crisis persists, and high government tariffs drive consumers away from larger rival Indonesia, the world's biggest edible oil producer.

Europe

Due to a large cost rise for RSPO-certified palm and PKO, as well as their respective derivatives, BASF Personal Care Europe is compelled to drastically increase the Mass Balance premium for all palm (kernel) oleoderivatives in the EMEA region (Europe, Middle East, and Africa).

For First, Second and Third Quarters of 2021

Asia

For the first time since March 2008, Malaysian benchmark CPO spot prices surged to 1,300 USD/MT in November 2021, as palm oil output in Indonesia, the world's largest exporter, fell despite improved rains in the prior two years. In 2021, prices averaged around 1,070 USD/MT, similar to the 2011 high. Due to the lingering impacts of poor fertiliser use and upkeep in 2018-2019, when palm oil prices were low, Indonesia's monthly production continued to decline from August to October 2021, compared to a year earlier.

For the Year 2020

Asia

Crude Palm Oil (CPO) had an average price of 8,117 IDR/kg in 2020, with the maximum price of 9,373 IDR/kg in the fourth quarter. Palm oil prices had been reasonably consistent in 2020, with a lower price of 6,265 IDR/kg in the third quarter. However, because the Indonesian government declared in December 2020 that it would increase the export fee for CPO, the increase in its price had not been fully reflected in the price of palm oil processed products. The previous export cost was set at 55 per USD/MT, but beginning December 10, 2020, a new progressive export tax was applied, ranging from 55 to 255 USD/MT, depending on CPO prices.

Weak output and low inventory in Malaysia, strong prices and prognosis for soybean oil, a close alternative for palm oil, due to market expectations of dry weather impacting supply, and a recent jump in Indonesian palm oil export levies all bolstered prices in the second half of the year. Foreign labourers, who make up around 70% of the workforce on Malaysian oil palm fields, were unable to reenter the country due to pandemic-related border closures in 2020. As a result, production was expected to drop to 18.3 MMT in 2020, down from 19.2 MMT in 2019.

Malaysian benchmark CPO spot prices reached 900 USD/MT for the first time since 2012 in December 2020 and have averaged approximately 810 USD/MT in Q4 2020. This was much higher than the 3Q20 average of 660 USD/MT.

Europe

On the back of increased demand and slowing production growth, European CPO prices rose to an average of 610 USD/MT including cost, freight, and insurance (CIF Rotterdam) in the first half of 2020.

Prices skyrocketed in the second half of 2020 and stayed high in the first half of 2021. In the Rotterdam region, the average price of CPO was 1,115 USD/MT, up 72% over the same period previous year. This is due to the surprisingly low production and ever-dwindling stockpiles.

North America

PKO usage is presently comparable to that of coconut oil, and PKO apparently held higher volumes during H1 2020, as more and more users switched to PKO instead of coconut oil. The average price of palm kernel oil (PKO) stood at 825 USD/MT in 2020.

Latin America

Colombia's total crude palm oil production in 2020 was 1,559,011 MT, up 2% from 2019. 52% of this production was earmarked for the domestic market, with the remaining 48% slated for export, totaling USD 515 million in sales.

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Procurement Resource provides latest prices of Crude Palm Kernel Oil. Each price database is tied to a user-friendly graphing tool dating back to 2014, which provides a range of functionalities: configuration of price series over user defined time period; comparison of product movements across countries; customisation of price currencies and unit; extraction of price data as excel files to be used offline.

Chart Description: 

Procurement Resource provides Crude Palm Kernel Oil prices for several regions around the globe, which are as follows:

  • North America
  • South America
  • Europe
  • Asia Pacific
  • Middle East
  • Africa

Industrial Uses: 

  • Ghee
  • Butter
  • Ice-Cream
  • Chocolate
  • Dairy Products
  • Soap
  • Cream 
  • Body Lotions
  • Detergents

Production Processes: 

  • Production of Crude Palm Kernel Oil via Mechanical Extraction Process.

In the mechanical extraction process, production of Crude Palm Kernel Oil involves three basic steps, which starts with kernel pre-treatment, then screw-pressing, and finally oil clarification. This method can be used and is suitable for both small- and large- capacity operations.
 
Supplier Database: 

  • Cargill, Incorporated
  • United Palm Oil Industry Public Company Limited
  • Wilmar International Ltd.
  • Sime Darby Plantation Berhad
  • IOI Corporation Berhad
  • Musim Mas Holdings Pt. Ltd

Note: Our supplier search experts can assist your procurement teams in compiling and validating a list of suppliers indicating they have products, services, and capabilities that meet your company's needs.

Methodology: 

The displayed pricing data is derived through weighted average purchase price, including contract and spot transactions at the specified locations unless otherwise stated. The information provided comes from the compilation and processing of commercial data officially reported for each nation (i.e. government agencies, external trade bodies, and industry publications).

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