CRUDE PALM OIL

In accordance with the regulations of Crude Palm Oil traded on Bursa Malaysia Derivatives Exchange (BMDX).

Crude Palm Oil Overview

Palm oil is a vegetable oil extracted from the pulp (flesh) of the palm fruit from the oil palm tree. Crude palm oil after pressing has a yellow-dark red color because it contains a lot of carotene and Vitamin E. Palm oil contains about 77% saturated fat, about 26% monounsaturated fat and 12% polyunsaturated fat. the group. Palm oil is like a gift from nature to Malaysia and the human world. Malaysia is the second largest palm oil producer in the world, after Indonesia.
According to statistics of the Association of Indonesian Palm Oil Exporters (Gapki), the export turnover of this product reached 22.97 billion USD last year, higher than 20.22 billion USD in 2019. .
Malaysia has set a target for the export value of palm oil and palm oil products to reach 72.8 billion ringgit (~ 17.6 billion USD) in 2020, the Ministry of Commodities said.

Characteristics of crude palm oil
Physical state (ambient temperature)

At room temperature, palm oil exists in a waxy form that is characterized by approximately 50% saturated fat. When the ambient temperature drops below 20 degrees Celsius The oil turns to solid state.
Characteristic properties of palm oil have a relatively higher melting point than soybean, sesame, peanut....so when the ambient temperature is low, the oil leads to freezing. The reason is that palm oil contains more saturated fatty acids than other oils. According to Associate Professor Dr. Phan Thi Suu, consumers who buy vegetable oils should choose to buy liquid oils, which contain a lot of unsaturated fatty acids, in the following order: olive oil, sesame oil (sesame), corn oil, sunflower oil, soybean oil, palm oil.
For Cooking oil products, the heat resistance is from 20 to 22oC, if the ambient temperature is above 30oC, the oil will melt immediately and return to its original state.

Use

Palm oil (and palm oil products) has very good resistance to heat and oxidation; Therefore, palm oil is considered an ideal material in the production of frying oil mixtures.
Producers and consumers around the world have used palm oil in high proportion in frying oil for two purposes: economy and good quality. In fact, palm oil has replaced 100% of oils extracted from other traditional seeds such as soybean, rapeseed.
Products that use frying oil are usually french fries, donuts, instant noodles, and nuts.
Although processed from different sources: palm oil, sunflower oil, peanut oil, soybean oil, sesame oil, canola oil... but all vegetable oils have the advantage of not containing cholesterol.

Production and consumption of crude palm oil

Crude palm oil is produced and exploited mainly by countries: Indonesia and Malaysia, the production market shares of these two countries combined up to more than 80% of the world's output.

Figure 1: Top 10 crude palm oil producing countries in the world in 2019

Of course, Indonesia and Malaysia are also the two leading exporters of Palm Oil

Figure 2. Top 10 palm oil exporting countries in the world

The main importers of crude palm oil in the world are China and India, accounting for nearly 40% of the world's palm oil import market share.

Figure 3. Top 10 Palm Oil importers in the world

In addition, developed countries such as Europe and the United States also use a large amount of Palm Oil.

Major factors influencing the Crude Palm Oil market

* Weather:  Climate, weather in palm oil growing areas, especially Malaysia and Indonesia. These 2 countries are located in the tropical climate zone, prone to heavy rain and floods.
* Alternative vegetable oil products:   Demand for other vegetable oils such as soybean oil, sunflower oil.
* Supply:  Export policy of the two main producing countries, Malaysia and Indonesia.
* Environmental protection policy: Palm oil greatly affects the plant ecosystem in Indonesia