Palm prices supported by new markets, March freight costs decrease
1 RM (Malaysian Ringgit) = 0.22 USD
1 USD = 0.76 GBP
*Exchange rates calculated and market prices reported on April 3, 2025
Crude Palm Oil
Average World Bank March 2025 palm oil price
US$1067/tonne (-US$3)
Malaysia palm market
Palm follows soy oil down
The Malaysia Palm Oil Settlement Price traded in a RM327/tonne (US$72) range of RM4,246/tonne (US$934) to RM4,573/tonne (US$1,006) during March, with an average for the month of RM4,428/tonne (US$974).
The price at the start of the month was RM4,538/tonne (US$998). That was followed by a small rise and then a recovery to a March 2025 high of RM4,573/tonne (US$1,006) on the 14th March. Values then fell again to a month-low of RM4,246/tonne (US$934). The month ended at a price of RM4,437/tonne (US$976), 2.3% less than the month before, 4.1% more than the year before and 37.5% less than the all-time high in April 2022.
A drop in demand for Malaysian palm oil from China and India has been cushioned by stronger sales to emerging markets such as sub-Saharan Africa, according to the Malaysian Palm Oil Council.
Malaysia CPO Settlement Price RM
Vegetable oil
More Ukrainian and Russian sunflower seed boosts world vegetable oil production
In its most recent global vegetable oil report, the USDA’s forecast was:
“The global oilseeds production forecast is up around 2 million tons to 680 million this month on higher Ukraine and Russia sunflower seed, Australia rapeseed, China cottonseed, and Brazil peanut. Oilseed trade is raised slightly to 208 million on higher Australia rapeseed and Canada soybean, despite a decrease in South Africa soybean trade. Oilseed ending stocks are lowered nearly 1 million tons to 139 million on reduced China and Argentina soybean stocks which more than offset higher China and EU rapeseed as well as Russian sunflower ending stocks. Global crush is up around 2 million tons to 563 million tons on higher China and Argentina soybean, Ukraine sunflower seed, and United Arab Emirates rapeseed crush despite lower China rapeseed and cottonseed crush. Global meal trade is up over 1.5 million tons to 110 million on higher Argentina, Ukraine, and China soybean meal exports. The projected U.S. season-average farm price for soybeans is decreased 15 cents to $9.95 per bushel.”
Average global palm oil prices in March were 0.2% more than February at US$1,069/tonne, according to the World Bank. That price was 13.4% more than in March 2024. Pam kernel oil prices rose 6.0% in the month and 75.3% over the year to US$2,064/tonne. Soybean oil prices fell 5.9% over the month, but were 4.2% higher over the year at US$1,005/tonne. There was a 2.8% increase in rapeseed oil in the month to US$1,192/tonne, which was 15.8% less than the year before. Sunflower oil prices rose 0.7% in the month and 29.2% over the year to US$1,228/tonne.
Average world soybean oil prices in US$/tonne
Rapeseed oil
Average world rapeseed oil price in US$/tonne
Sunflower oil
Average world sunflower oil prices in US$/tonne
Shipping Update
A big fall in March freight costs
Shipping costs fell throughout March, but there was a slight increase in the first week of April.
The Drewry World Container Index stood at US$2,208 per 40-foot container on April 3, 2025. That was 13.1% less than it had been the month before, 26.6% less than the year before and 62.8% less than the peak value set in July 2024. There was a 2.0% increase in the container index in the week to 3rd April, with the largest increase in freight rates from Shanghai to Los Angeles.
The imposition of US tariffs could mean a further decline in freight prices as trade is impacted by the new duties.
From the 3rd April Drewry World Container Index:
- The Drewry WCI composite index rose 2% to $2,208 per 40-foot container, 79% below the previous pandemic peak of $10,377 in September 2021. However, the index was 55% higher than the average $1,420 in 2019 (pre-pandemic).
- The average YTD composite index closed at $2,993 per 40-foot container, $105 higher than the 10-year average of $2,887 (inflated by the exceptional 2020-22 Covid period).
- Freight rates from Shanghai to Los Angeles increased 10% or $239 to $2,726 per 40-foot container and those from Shanghai to New York increased 8% or $272 to $3,894 per 40-foot container. Conversely, spot rates from Rotterdam to Shanghai decreased 7% or $34 to $466 per 40-foot container and those from Shanghai to Genoa fell 4% or $140 to $3,031 per 40-foot container. Rates from Shanghai to Rotterdam decreased 3% or $66 to $2,304 per 40-foot container, while those from New York to Rotterdam and Rotterdam to New York decreased 2% to $831 and $2,124 per 40-foot container, respectively. Rates from Los Angeles to Shanghai reduced 1% or $4 to $705 per 40-foot container. The Transpacific trade lane witnessed a reversal of its months-long WoW trend of declining spot rates due to the recent sailing cancellations. The imposition of tariffs, announced by Trump yesterday, is anticipated to introduce greater volatility to these spot rates.
Source: Drewry Supply Chain Advisors
Disclaimer: The information in this document has been obtained from or based upon sources believed to be reliable and accurate at the time of writing. The document should be for information purposes only and is not guaranteed to be accurate or complete.