RBD Palm Olein Price Trend and Forecast

RBD Palm Olein Regional Price Overview

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

RBD Palm Olein Price Trend for the First Half of 2024

Asia

In Asia, the price trend of RBD Palm Olein during the first half of 2024 was initially marked by a sharp increase. This rise in prices was primarily driven by the severe effects of the El Niño weather phenomenon, which led to unfavorable conditions for palm fruit production in key producing countries like Malaysia and Indonesia. These nations experienced dry weather, negatively impacting the yields of palm fruits and significantly reducing overall production. Furthermore, these countries implemented export restrictions to prioritize their domestic markets, which added to the tight supply situation.
 

RBD Palm Olein Price Chart

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Higher biofuel mandates also heightened domestic consumption of palm oil, further limiting availability for export and pushing prices upward. As the second quarter progressed, the market began to see a decline in prices. This shift was due to improved growing conditions that led to a recovery in production, with better-than-expected harvests.

Europe

In Europe, RBD Palm Olein prices experienced a steady increase throughout the first half of 2024. Similar to Asia, Europe’s primary suppliers, Malaysia and Indonesia, were severely impacted by the El Niño weather pattern, which reduced palm fruit yields and led to a supply shortage.

Despite these supply challenges, demand in Europe remained strong, driven by recovering economies and sustained needs from end-user industries such as food, cosmetics, and oleochemicals. Additionally, disruptions in global supply chains, including delays in transport routes like the Red Sea, added to the logistical hurdles, making it difficult to meet demand. Moreover, limited stock levels in European warehouses exacerbated the upward pressure on prices throughout the region.

North America

In North America, the price trend of RBD Palm Olein followed a similar pattern to that seen in Asia and Europe. Prices initially surged due to increased domestic consumption. However, global supply remained constrained as the effects of El Niño impacted production in Malaysia and Indonesia, leading to reduced exports.

Market players in North America initially relied on existing inventories to satisfy demand, but these stocks were quickly depleted as the year progressed. Furthermore, supply chain disruptions in North America compounded the situation. The temporary closure of the Baltimore port and low water levels in critical transit routes like the Panama and Suez Canal restricted the flow of palm oil into the region, driving prices even higher. As a result, North America saw a significant rise in RBD Palm Olein prices during the first half of 2024.

Analyst Insight

According to Procurement Resource, the price trend of RBD Palm Olein is expected to majorly circle around the supply-demand equilibrium of the market as limited production in South Asian regions and trade difficulties might limit the availability of the commodity.
 

RBD Palm Olein Price Trend for the Second Half of 2023

Asia

In Asian countries, the average production and hike in the interest of the downstream industries, along with the rise in the cost of fertilizers, insecticides, and other input materials, the RBD palm olein prices inclined substantially in the third quarter of 2023.

Particularly in Indonesia, the commodity traders noticed that even after the expansion of production units, the existent rates were unable to meet the growing interest of consumers, providing room for them to raise their price quotations of RBD palm olein. However, the dynamics were overturned in the last quarter when the inventories surpassed the domestic and overseas procurement rates. The Malaysian market, on the other hand, reverted upwards from this avalanche in the last month of the year, ending the year on an optimistic note.

Europe

A surge in demand and a low level of stockpiles guided the RBD palm olein price trend towards an upward trajectory during the third quarter of 2023. There were also several instances in those months when traders noted a slight relief in the inflationary pressure on account of which the consumers were able to raise their spending appetite. On the other hand, the fourth quarter brought several fluctuations as the prices dropped by a great margin in the first month. The rebound of the market in the subsequent months was slow but steady.

North America

In North America, the RBD palm olein prices showcased a similar trend as was observed in the Asian countries, with regional prices rising in the third quarter on account of the inclining cost of operation, global demand, and substantial reduction in inventories.

The majority of inventories started restocking in anticipation of excessive demand from the downstream industries. However, due to a sudden hit in global dynamics, the RBD palm olein prices moved southwards in the initial phase of the fourth quarter and then only improved slightly in the rest of the month.

Analyst Insight

According to Procurement Resource, the price trend of RBD Palm Olein is expected to oscillate in the upcoming quarters as the downstream demand and production rates might struggle to find an equilibrium.
 

RBD Palm Olein Price Trend for the First Half of 2023

Asia

The first quarter of 2023 witnessed a decline in the prices of RBD palm olein due to a lack of cost support from the bleak trading sentiments and a lack of demand from the domestic sector.

In the second half of this quarter, the trend gained momentum, and prices inclined as end-user industries showcased a positive growth rate. The prices continued to surge till the middle of the second quarter, after which they fell steeply as the demand for cooking oil and its derivatives declined in major RBD palm olein-producing nations.

Europe

The consumers in European countries had less faith in the RBD palm olein market, which was evident in their low appetite in the first quarter of 2023. The stock of RBD palm olein was already abundant in the European markets, and further influx from Asian countries only raised the level of inventories. However, the initial months of the second quarter showcased signs of improvement in the RBD palm olein price trend.

The surge in the prices was supported by increased demand for edible oils and overall consumption rates, but the availability of cheap imports and high domestic inventories proved to be a challenge for the RBD palm olein prices in this quarter.

North America

The RBD palm olein prices in North America suffered from weak procurement rates, excess stockpiles, and weak trading sentiments in the initial phase of the first quarter. However, unlike European and Asia-Pacific markets, the prices of RBD palm olein in North America inclined in the second quarter of 2023 mainly because of the ban imposed on imports from major RBD palm olein exporting nations. This ban helped in reducing the level of inventories and, thus, positively influenced the rise in prices of RBD palm olein.

Analyst Insight

According to Procurement Resource, the price trend of RBD Palm Olein is expected to fluctuate in the upcoming months as the demand from downstream industries seems to vary from place to place, and volatility in the consumption rates of consumers also presents a challenge for RBD palm olein market.

Procurement Resource provides latest prices of RBD Palm Olein. 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.