Climate and Farming Impact – (2024)
Unpredictable weather patterns—including excess rainfall in Malaysia and drought in parts of Indonesia—lowered fruit yields and disrupted harvesting. This coincided with strong global demand from the food and biofuel sectors, keeping prices elevated. Furthermore, the enforcement of sustainability certifications and EU deforestation-free regulations restricted export access to premium markets, influencing overall trade dynamics and price movement.
Feedstock & Logistic Disruptions – (2023)
Extreme weather events, heavy rainfall, and logistical bottlenecks in Southeast Asia disrupted crude palm oil (CPO) supplies—RBD Palm Oil’s key feedstock. Export restrictions, high inflation, port congestion, and elevated freight costs intensified supply chain challenges. Meanwhile, low stock levels in major importing countries and fluctuating CPO prices caused short-term price spikes.
Russia-Ukraine War – (2022)
The conflict created severe disruptions in the sunflower and rapeseed oil supply chains, making RBD Palm Oil a key substitute in global edible oil markets. Demand spiked across Europe, South Asia, and Africa, putting upward pressure on prices. Simultaneously, the war increased energy, fertilizer, and freight costs, significantly raising production expenses for palm oil producers and processors.
Post-COVID Demand Recovery – (2021)
With economies reopening, demand for RBD Palm Oil rebounded sharply, particularly for cooking oils, processed foods, margarine, and instant noodles. Surging import demand from India, China, and the Middle East drove prices higher. However, ongoing labour shortages in Malaysia and Indonesia limited supply growth, tightening the market and supporting elevated price levels.
The COVID-19 Pandemic – (2020)
Global lockdowns and labour shortages significantly disrupted palm plantation operations and refining activities, including RBD Palm Oil production. Restricted transportation, mill closures, and port shutdowns delayed shipments and reduced processing capacity. As demand from HORECA (hotels, restaurants, catering) and food processing sectors declined temporarily, inventories rose, causing oversupply and price volatility.