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Palm Oil Prices, Trend, Demand & Supply, Market Analysis | ChemAnalyst

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Palm Oil Prices, Trend, Demand & Supply, Market Analysis | ChemAnalyst





For the Quarter Ending September 2023


North America


During the third quarter of 2023, Palm Oil prices in North America mirrored the trends in the APAC market, maintaining a positive trajectory. The region experienced heightened demand in the downstream sector and increased inquiries, keeping prices consistently optimistic. A notable reduction in inventory levels also contributed to strong purchasing sentiments. Furthermore, transportation costs to the United States witnessed a significant uptick during this period, sustaining a positive market sentiment. The continuous rise in both local and global demands played a pivotal role in boosting oil prices. In logistics, overall costs surged by 18.6 points, reaching a reading of 175.3 in August. The primary factor behind this increase was related to inventory expenses, driven by limited storage capacity and restocking efforts at major corporations. The restocking initiatives at larger firms slowed down the decrease in inventory levels. Data on US imports suggested that inventory levels would likely remain low for the current season. In anticipation of future demand and recognizing supply chain challenges, many businesses opted to replenish their inventories for the entire quarter, leading to a surge in demand and driving prices upward until the end of September. Additionally, the United States experienced a significant price hike, attributed to escalating raw material costs, specifically Palm Oil seeds, and increased production expenses.


Asia Pacific


Throughout the third quarter of 2023 in the APAC region, particularly in Indonesia, the Palm Oil market displayed an overall optimistic sentiment with minor weekly fluctuations. Increased demand for Palm Oil in India coincided with rising input costs, such as fertilizers and insecticides for Palm Oil cultivation, adding to farmers' production expenses. Delayed monsoons and unseasonal rains affected the global availability of Palm oil, leading to reduced manufacturing and limited supply in the market. Indonesia's Manufacturing PMI rose to 53.9 in August 2023, marking the 24th consecutive month of expansion in factory activity. Both output and employment experienced significant growth, with new orders surging at the fastest rate in 26 months. Indonesia's Consumer Price Index (CPI) rose in September, and employment growth was moderate. Manufacturers and suppliers strategically maintained ample Palm Oil stock levels in anticipation of high demand during upcoming festivals, bolstering the market's upward trajectory for the month.


Get Real Time Prices of Palm Oil: https://www.chemanalyst.com/Pricing-data/palm-oil-1319


Europe


Throughout the third quarter of 2023, Palm Oil prices in Europe exhibited a consistent upward trend, reflecting market patterns in the United States and the Asia Pacific region. This surge was driven by a significant increase in regional demand and a shortage of stock, leading to higher global Palm Oil prices. Despite Germany's lower inflation rate in August, economists anticipate a faster decline in the coming months. Preliminary data from the Federal Statistics Office indicated a higher consumer price growth in the United States compared to the rest of the European Union. This rise was primarily driven by increased costs of necessities like food and energy. A shortage of Palm Oil supply, suboptimal crushing activities, and government intervention influenced market dynamics, while domestic supply shortages due to a persistent surge in inquiries reinforced the upward trajectory of Palm Oil prices.

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