Overview
Palm oil is the world’s most produced and consumed vegetable oil, derived from the fruit of the Elaeis guineensis oil palm tree through mechanical pressing and refining. It exists in two commercially distinct forms: Crude Palm Oil (CPO), extracted from the fruit’s mesocarp, and Palm Kernel Oil (PKO), extracted from the kernel. Industrially, CPO undergoes refining, bleaching and deodorisation (the RBD process) to produce refined palm oil suitable for food manufacturing, margarine production, shortening, instant noodles, and baked goods.
It is also a major feedstock in the oleochemical and biodiesel industries. Crude palm oil futures trade on Bursa Malaysia Derivatives, physical cargoes are priced per metric tonne, and free fatty acid (FFA) content and moisture are the critical quality parameters.
Typical specification
- Trade forms
- CPO, RBD palm oil, RBD palm olein (CP6, CP8, CP10), palm kernel oil
- CPO free fatty acids
- 5 percent maximum
- CPO moisture and impurities
- 0.25 percent maximum
- Futures
- Bursa Malaysia Derivatives (FCPO)
- Packing
- Bulk, flexitank or jerrycans
Market reference values. Final specification, origin and quantity are agreed contract by contract.
Main uses
- Cooking oil
- Food manufacturing
- Oleochemicals
- Biodiesel
How a transaction runs
These four stages apply to every enquiry, whatever the product and the volume.
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Enquiry
Tell us the product, specification, quantity, destination and target schedule.
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Verification
Due diligence is carried out on both counterparties before any offer is exchanged.
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Offer and contract
Price, Incoterm and payment instrument are set out in the offer, then in the sale and purchase agreement.
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Inspection and delivery
Quality and quantity are checked by an independent inspector before the cargo is released.
Request a quote for Palm Oil
Tell us what you need, or what you have to sell. Every request is read by the desk and answered by email.
- Office
- Dubai, United Arab Emirates