Price Assessment

The Price of Palm Oil and Distillates

  • What are the Palm Oil and Distillates price assessments?
  • How do we assess the Palm Oil and Distillates market?
  • Why are these prices important?

What are the Palm Oil and Distillates price assessments?

On September 2, 2019, S&P Global Commodity Insights launched 4 Platts price assessments to bring greater transparency to the growing palm market:

— Crude Palm Oil (CPO) FOB Indonesia
— Crude Palm Oil (CPO) CFR West Coast India
— Palm Fatty Acid Distillate (PFAD) FOB Indonesia
— Refined, Bleached and Deodorized (RBD) palm stearin FOB Indonesia

This was followed on November 1, 2019, by the launch of 2 new price assessments:

— Crude Palm Oil (CPO) CIF Rotterdam
— Crude Palm Kernel Oil (CPKO) CIF Rotterdam


They are daily price assessments in USD per metric ton reflecting the prevailing value of the market at either 6:00 pm Singapore time (1000 GMT) or 4:30 pm London time.

How do we assess the Palm Oil and Distillates market?

Our assessments are based on robust and transparent market data that includes, but is not limited to, firm bids and offers, expressions of interest to trade and confirmed trades reported across the trading day.


–Crude Palm Oil (CPO) and Crude Palm Kernel Oil (CPKO)

The FOB Indonesia CPO assessment reflects maximum free fatty acids (as palmitic) content of 5% and maximum moisture and impurities (M&I) content of 0.5% and parcels loading out of Dumai.

The CFR WC India CPO assessments reflect maximum FFA (as palmitic) content of 4.5% and maximum M&I content of 0.5% and parcels for delivery into Kandla.

Both assessments reflect a typical clip size of 1,000 mt and parcels shipping one month forward. For the CFR WC India CPO assessment, this is the basis of an Indonesian shipment time into west coast India.

The assessment laycan will roll over to the next calendar month on the first publication day after the 15th.

The CIF Rotterdam assessments reflect typical Malaysian/Indonesian quality CPO and CPKO.

Both assessments represent material with maximum Free Fatty Acids (FFA) content of 5% and maximum Moisture and Impurities (M&I) content of 0.50% and a typical parcel size of 500 mt.

The CPO CIF Rotterdam assessment reflects parcels for shipment one calendar month forward; the CPKO CIF Rotterdam assessment reflects parcels for shipment one month forward but over a period of two calendar months. Both are basis Malaysia/Indonesia shipment time into Rotterdam.

The assessment laycan for both assessments will roll over to the next calendar month on the first publication day after the 15th of each month.


–Palm Fatty Acid Distillates (PFAD)

The FOB Indonesia PFAD assessment reflects the specifications for PFAD as defined by the Palm Oil Refiners Association of Malaysia (PORAM) and parcels loading out of Dumai, with a typical clip size of 500 mt., shipping one month forward, but over a period of two calendar months.


The assessment laycan will roll over to the next two calendar months on the first publication day after the 15th.


–RBD Palm Stearin

The FOB Indonesia RBD Palm Stearin assessment reflects the specifications for RBD Palm Stearin as defined by PORAM and parcels loading out of Dumai, with a typical clip size of 500 mt., shipping one month forward, but over a period of two calendar months. The assessment laycan will roll over to the next two calendar months on the first publication day after the 15th.

Why are these prices important?

With a global CPO production of around 76 million mt in 2019/20, the palm market increased by 2.60% year on year. India is the single largest importer of palm oil globally, taking 19% of total world palm oil exports, and its imports are expected to rise by around 2.50% in the current marketing year, according to USDA estimates.
The European palm oil market is growing steadily, with the EU now accounting for 10% of global demand. Indonesia and Malaysia currently represent around 90% of global palm oil supply.


A robust and transparent physical price representing the specific dynamics of regional markets and which leads to physical indexation and financially settled derivative instruments is a powerful tool which helps customers and other market participants:

— Manage and hedge price risks
— Leverage arbitrage opportunities
— Carry out negotiations more profitably and efficiently
— Make better-informed planning and trading decisions