Mumbai, 01 Apr (Commoditiescontrol): Domestic palm kernel oil (CPKO) prices in Malaysia have surged for a ninth consecutive week, reaching their highest level since June 2022. The average weekly offer reached 327.80 ringgit per picul, which is 19.80 ringgit higher than the previous week. Offers ranged between 325 and 330 ringgit per picul.
CPKO prices have been supported by tight supply and healthy demand, particularly from the oleochemical sector, since mid-January this year. This has pushed prices above year-ago levels, although they remain below the all-time high of 606.20 ringgit per picul set in February 2022.
Some market participants attribute the rise in CPKO prices to the recent increase in cocoa butter substitute (CBS) prices. CBS is made from palm kernel stearin, which is derived from palm kernel oil. However, the primary driver remains strong demand from the oleochemical sector, with some buyers who had previously held off on purchases now entering the market.
Malaysian CPKO exports in March are estimated at 22,740 tonnes, a significant increase of 162% compared to February. The Netherlands (9,440 tonnes) and India (10,990 tonnes) were the biggest recipients of this surge. Processed CPKO exports also rose in March, reaching 26,210 tonnes, a 24% increase from February. China and Turkey were the primary destinations for processed CPKO, accounting for slightly less than two-thirds of the total volume.
(Note: 1 tonne is equivalent to 16.5346 picul)
(By Commoditiescontrol Bureau; +91-9820130172)
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