Palm kernel oil led gains among vegetable oils in July

Global vegetable oil prices moved in different directions in July, with palm kernel oil recording the strongest increase. Its price surged 12.7% over the month to $2,441/ton, the highest level in three months, according to World Bank data published on August 5.

The sharp increase was driven primarily by lower coconut oil prices, as coconut oil is one of the closest substitutes for palm kernel oil in the food, cosmetics and pharmaceutical industries. In July, coconut oil prices fell 5.4% from June to $1,924/ton, the lowest level since November 2024.

The widening price gap between the two oils boosted demand for palm kernel oil, resulting in a sharp rise in its quotations. Meanwhile, conventional palm oil prices edged down 0.2% to $1,101/ton, the lowest level since February.

Other major vegetable oils also posted losses during the month. Rapeseed oil declined 1.8% to $1,494/ton, sunflower oil also fell 1.8% to $1,483/ton, while soybean oil recorded the largest decline among the group, dropping 4.6% to $1,660/ton.

The latest data highlight significant shifts in the global vegetable oil market. While most vegetable oils declined in value during July, palm kernel oil stood out as the strongest performer, posting the largest monthly price increase among the major vegetable oils.

Tags: palm oil, prices