Palm kernel oil in the U.S. market moved higher in February after a steady January buildup, driven by robust industrial demand and supply frictions. Mid-January demand from detergent formulators and confectionery producers tightened spot availability. European shipment checks and origin yield slippage elevated supplier offers and delayed cargoes bound for Gulf Coast ports. The market shifted from a cautious start to firmer near-term conditions, with buyers competing for CFR Houston cargoes and prioritizing spot coverage. Demand was strongest in confectionery and homecare, with packaged-food, electronics and fatty-alcohol export runs providing support. The confectionery sector remained tight, drawing on more than half a million tons annually and consuming roughly a quarter of domestic palm-derivative volume. Detergent formulators’ uptake of high-shear micro-encapsulation and MES technology lifted PKO demand. On the supply side, yield slippage raised production-cost volatility and underpinned firmer supplier offers, while European checks and export diversions reduced Gulf Coast availability. Looking ahead, the outlook favors firmer action and tighter availability.
