Palm Kernel Oil Prices Surge in US Amid Global Supply Crunch and Strong Demand

Key Highlights:

•             Supply Disruptions: Heavy rains and labor shortages in Indonesia and Malaysia reduced exportable volumes.

•             Global Demand Spike: China, India, and European biodiesel refiners increased procurement, raising price benchmarks.

•             Freight vs. FOB Impact: Lower freight costs were neutralized by rising FOB prices at origin.

•             Currency Advantage: US dollar appreciation boosted purchasing power, sustaining bullish import sentiment.

Unit: USD/MT

The US market witnessed sustained increase in import prices of palm kernel oil during the final week of august, reflecting a global supply-side pressure, higher cost of freight and resilient downstream demand.

Market participants reported that the steady upward trajectory, visible since mid-august, gained momentum in the last week of month, further straining palm kernel oil procurements cost for buyers in the food,...