Refined, bleached and deodorized (RBD) palm kernel oil prices in the US have increased sharply over the last few weeks, reaching a level not seen in around two years.

The rally in palm kernel oil prices has been attributed to tighter supply amid robust demand from the food and oleochemical industries, market sources said.

On Thursday July 25, Fastmarkets assessed palm kernel oil, RBD, fob US NY/NOLA at $0.70-0.71 per lb. The price is up by 5% week on week, by 13% since the beginning of the month and by 35% year on year.

The higher prices could be impacting demand, however.

Cargo surveyor data for the first 20 days of July indicates that Malaysia’s processed palm kernel oil export shipments were in decline, dropping to just above 20,000 tonnes, down by around 17% from the 24,315 tonnes exported in the corresponding period a month earlier.

Domestic 2023/24 soybean oil exports surge 71% week on week