Palm Oil Price Today

Palm Oil Historical Prices

The historical price of Palm Oil are as given below

Palm Prices Today

Given in the table below Palm Rates for Last 10 Days

Types of Palm Oil

There are several types of palm oil available in market today. They are as follows

Crude palm oil - Crude Palm Oil (CPO) is a vegetable oil obtained from the pulp from the fruit of oil palm trees. CPO is a reddish-brown oil, unlike its yellow-black counterparts. The name comes from the fruit from which CPO is obtained. There is very little waste in the palm tree fruit, and the kernel is also used to make palm kernel oil, also called vegetable lard. This oil is not only used for cooking, but also for a variety of other purposes, including toiletries and food products.

Palm kernel oil - The seed inside palm fruit is known as the kernel, and it’s no surprise that palm kernel oil comes from the kernel. Palm kernel oil is high in Lauric acid and saturated fat, making it a very stable cooking fat. Palm kernel oil resists oxidation and rot and is well suited for food production. This type of oil is naturally white in colour and solid when at normal temperature. However, it becomes transparent and liquefied as it warms.

Fractioned palm oil - The triglycerides in palm oils have different melting points, so they can only be separated by careful heating of the oil to a certain temperature. Palm oils can be divided into liquid fats (olein, 46% saturated fat) and solid fats (stearin with 65% saturated fat) that can be used for various purposes. Oleins are liquid fats, so they are used when you need liquid fat, like in salad dressing. Stearins are solid fats, so you need them when you need a solid fat, like for deep frying. The palm stearin is also known as white palm oil.

Virgin palm oil - Palm oil, derived from the fruit of the palm, is a deep reddish-orange color with less saturated fat than palm kernel oil. It contains carotenes like lycopene and beta-carotene, which are antioxidants. Also known as ‘Virgin palm oil’, it is a rich source of vitamin E and antioxidants. It is used as cooking oil and is also sold as a nutritional supplement, enhancing digestion and nutrient absorption.

Why is Palm Oil valuable

In addition to the efficiency of producing more than average yield per hectare, palm oil is also the highest-yield edible oil crop. With an ever-growing global population, the demand for palm oil has only continued to grow. In addition to cooking and food, palm oil is used in cosmetic products, toiletries, shampoo and soap, biodiesel, and many other products. Perhaps the key to palm oil’s value is its versatility, which is why the palm oil industry continues to grow.

Factors that Affect Price of Palm Oil

The palm oil price is affected due to following factors

Supply of palm oil - Like all plant-based fuels, the price of CPO is determined by standard supply and demand. Most palm oil plantations are located in tropical Southeast Asian countries such as Indonesia and Malaysia, where the weather patterns are often unpredictable, affecting the yield of palm oil. During dry spells or heavy rains that cause flooding, the palm oil production would suffer, and so would the prices.

Demand of the palm oil - Asia regions such as China and India are the key importers for palm oil, together accounting for a quarter of the global consumption.4 These are also countries that are expecting continued population growth, a key source for demand growth for CPO. On the other hand, import policies and regulations by importing countries may serve as trade barriers, thereby affecting the demand as well.

Environmental impact on production of palm oil - The World Wildlife Fund (WWF) estimates that around 90% of world oil palm trees grow on the islands of Malaysia and Indonesia, which are home to the most diverse tropical forests on Earth. Landscapes continue to be cleared to make way for palm oil plantations, threatening the rich biodiversity that these habitats support. This has led to significant criticism from environmental groups and a shift in public opinion from many palm oil products. Moreover, the UK government has also responded to the palm oil issue by committing in 2012 to sourcing 100% of its palm oil from sustainable sources.

Other substitutes to palm oil - Palm oil alternatives have also become more popular due to the environmental concerns mentioned above. Some of them, such as olive oil and coconut oil, can be seen replacing the various uses for which CPO was used.

Features and Benefits of investing in Palm Oil in India

Some of the features and benefits of investing in Palm Oil in India are given below

Diversified portfolio - Investing in palm oil helps to diversify your portfolio. By diversifying your portfolio, you can spread your risk across multiple asset classes and reduce the overall volatility of your portfolio by adding commodities such as palm oil. This helps in reducing the impact of negative developments in other sectors or asset classes.

Increasing demand - Palm oil is widely used in margarine and salad dressings, as well as in cooking oils and bakery products. India is a major consumer of edible oils, particularly palm oil. India has a large population and is changing its dietary habits. The demand for palm oil in India may be affected by changing consumer habits and a growing population.

Usage in other industries - Palm oil is not only used in the food sector, but it is also used in many industrial processes, such as the production of cosmetics, soap, ink and resins. Overall demand for palm oil is expected to grow due to the growing industrial sectors in India, which may also positively impact palm oil prices.

Market dynamic around the world - Palm oil is a great investment because you get to keep an eye on what's going on around the world. Prices are affected by global factors like international demand and supply, weather, and geopolitical issues. So, if you invest in palm oil, you can benefit from what's happening in the international market and diversify your investments outside of the domestic market.

Hedge against inflation - If you're looking for a way to protect yourself from inflation, investing in palm oil might be a good option. Inflation can take away your money, but when it's high, commodities usually stay the same or even go up in price. That's because the demand for what you need usually stays the same, so buying palm oil could help protect you from any price hikes.

Various opportunities - Commodity markets, especially palm oil, are a great place for traders and investors to get in on the action. By following market trends, using technical analysis, and looking at fundamental variables, you can make money from price movements in commodity markets.