Physical markets for palm oil and refined palm oil products stepped lower on Wednesday March 27, in line with a pullback in palm oil futures in Malaysia. US Gulf palm oil and palm olein assessments were down slightly, but still just near 53 cents per pound, holding near levels not seen in almost a year, since early May 2023.

In the US, palm oil prices have been competing for market share with cheaper animal fats, particularly amid buyers in the oleochemical and feed sectors. Since the end of 2023, the sustained lower price of tallow in relation to palm oil has resulted in some livestock reformulations in the US feed industry.

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