URL: https://www.chemanalyst.com/Pricing-data/palm-oil-1319

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.

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