Seasonal Bull Run of Palm Oil Puts Pressure on Fatty Acid Prices in US and China

Seasonal Bull Run of Palm Oil Puts Pressure on Fatty Acid Prices in US and China

Fatty Acid prices in both China and the US witnessed an upward trend in September. The rise in Fatty Acid prices was primarily attributed to the growing demand for palm oil in the global market.

Despite a modest decrease in crude palm oil (CPO) production, Malaysia’s CPO exports increased in September. However, the country’s CPO inventories have surged, indicating a possible surplus. Malaysia’s oleochemical exports decreased, while palm kernel oil exports increased significantly. Malaysia’s crude palm oil output declined 3.8%, but exports increased by 9.3%, from 1.53 million tonnes in August to 1.54 million tonnes in September. Crude palm oil stocks increased by 10.91%, from 953,145 tonnes in August to 1.06 million tonnes in September. Palm oil stockpiles increased by 6.93 percent, from 1.88 million tonnes in August to 2.01 million tonnes in September. Oleochemical exports including Fatty Acid fell 5.72% in September, while palm kernel oil exports rose 45.06% to 126,446 tons.

Indonesia raised the CPO reference price for October from USD 839.53 per ton to USD 893.64. This will likely impact production costs for Fatty Acid manufacturers, influencing their pricing strategies and market dynamics.

The consistent demand for Fatty Acid from the personal care industry played a crucial role in pushing up prices. India’s strong demand for palm oil, driven by domestic consumption and restocking ahead of the festive season, further supported the price increase in Fatty Acid.

Considering freight, Ocean freight continued to face various problems, including industrial unrest and capacity issues in important locations. Demand for ocean freight has decreased, but port congestion, equipment shortages, and rerouting around the Cape of Good Hope continued to limit supply. Asia and the Americas continue to drive much of the demand, with volumes putting pressure on pricing. Freight rates have largely stabilised, but they were still significantly higher than pre-pandemic levels. Seasonal rate reductions ahead of China’s Golden Week, as well as planned port strikes, might have an impact on price, with rate increases possible in Q4 due to peak season demand. Companies have been forced to reroute or suspend operations at the Cape of Good Hope due to cargo shipwrecks, resulting in significantly longer lead times and higher transportation costs. The Houthi threats may have an indirect impact on the Fatty Acid industry if the situation worsens and freight costs rise. Higher transportation expenses may result in greater manufacturing costs for Fatty Acid makers, pushing up pricing.

Looking ahead, the prices of Fatty Acid are expected to rise both in the USA and China. The ongoing northeast monsoon season and potential production decline in Malaysia and Indonesia have created concerns among market investors. As the production cycle slows, market participants fear that October may mark the output peak, leading to even higher prices for palm oil and Fatty Acid.

source: https://www.chemanalyst.com/NewsAndDeals/NewsDetails/seasonal-bull-run-of-palm-oil-puts-pressure-on-fatty-acid-prices-in-us-and-china-30801

29 thoughts on “Seasonal Bull Run of Palm Oil Puts Pressure on Fatty Acid Prices in US and China

  1. Sara Zaki says:

    We are seeking to import (Stearic acid and Glycerin) in Indonesian origin.. can you help us reach top Indonesian exports? the have the ability and availability to supply us.

  2. RichardRakly says:

    ?Hola fanaticos del casino
    Una gran ventaja de las casas de apuestas no reguladas es que aceptan criptomonedas como mГ©todo de pago,
    Los nuevos jugadores pueden acceder a tutoriales y guГ­as dentro de las propias casas sin licencia. ВЎAprender jugando!
    Casas de apuestas internacionales: ventajas y riesgos – mejorescasasdeapuestassinlicencia.xyz
    ?Que tengas excelentes exitos!

  3. DanielRaf says:

    ?Hola jugadores
    Gana 20 euros por registrarte y prueba suerte en tragaperras, ruletas y juegos de mesa. No pierdas esta oportunidad Гєnica de jugar gratis en casinos online en EspaГ±a.
    Recibe un bono de 20 euros que podrГЎs retirar y apuesta sin arriesgar tu dinero. – casino20eurosgratissindeposito.guru
    ?Que tengas excelentes botes acumulados!

  4. Waynerar says:

    ?Hola participantes del casino
    Las casas apuestas sin dni han ganado terreno frente a las tradicionales. Los usuarios valoran cada vez mГЎs la privacidad, la velocidad y la flexibilidad que ofrecen estas plataformas.
    casa de apuestas sin dni 2025 – casas de apuestas sin verificacion
    ?Que tengas excelentes partidas !

  5. Michaeljek says:

    ГГУ имени Ф.Скорины https://www.gsu.by/ крупный учебный и научно-исследовательский центр Республики Беларусь. Высшее образование в сфере гуманитарных и естественных наук на 12 факультетах по 35 специальностям первой ступени образования и 22 специальностям второй, 69 специализациям.

  6. JimmyHoact says:

    Francisk Skorina https://www.gsu.by Gomel State University. One of the leading academic and scientific-research centers of the Belarus. There are 12 Faculties at the University, 2 scientific and research institutes. Higher education in 35 specialities of the 1st degree of education and 22 specialities.

  7. Angelcip says:

    Create vivid images with Promptchan AI — a powerful neural network for generating art based on text description. Support for SFW and NSFW modes, style customization, quick creation of visual content.

  8. Wallacejeoma says:

    Недвижимость в Болгарии у моря https://byalahome.ru квартиры, дома, апартаменты в курортных городах. Продажа от застройщиков и собственников. Юридическое сопровождение, помощь в оформлении ВНЖ, консультации по инвестициям.

  9. EdwardWralf says:

    Срочный выкуп квартир https://proday-kvarti.ru за сутки — решим ваш жилищный или финансовый вопрос быстро. Гарантия законности сделки, юридическое сопровождение, помощь на всех этапах. Оценка — бесплатно, оформление — за наш счёт. Обращайтесь — мы всегда на связи и готовы выкупить квартиру.

  10. DonaldItene says:

    Портал о недвижимости https://akadem-ekb.ru всё, что нужно знать о продаже, покупке и аренде жилья. Актуальные объявления, обзоры новостроек, советы экспертов, юридическая информация, ипотека, инвестиции. Помогаем выбрать квартиру или дом в любом городе.

  11. Lonniemus says:

    В данной обзорной статье представлены интригующие факты, которые не оставят вас равнодушными. Мы критикуем и анализируем события, которые изменили наше восприятие мира. Узнайте, что стоит за новыми открытиями и как они могут изменить ваше восприятие реальности.
    Выяснить больше – https://medalkoblog.ru/

Leave a Reply

Your email address will not be published. Required fields are marked *