About Palm Oil

 

Palm oil is one of the world's most produced and consumed oils. This cheap, production-efficient and highly stable oil is used in a wide variety of food, cosmetic and hygiene products, and can be used as source for bio-fuel or biodiesel. Most palm oil is produced in Asia, Africa and South America because the trees require warm temperatures, sunshine and plenty of rain in order to maximize production.

Global palm oil production is dominated by Indonesia and Malaysia. These two countries, together, account for around 85 to 90 percent of total global palm oil production. Indonesia is the largest producer and exporter of palm oil worldwide.

Some common palm oil used in the food processing industry are in the form of margarine, vegetable ghee, used in products such as chocolate, bread, cookies, and cakes.. It is also commonly used for frying by fast food chains, as well as industrially manufactured products such as crisps and instant noodles. Most processed products, including products like infant formula, contain some amounts of added fat. This added fat is usually palm oil.

Palm oil is semi-solid at room temperature (20°C). The liquid portion could be physically separated from the solid portion of palm oil by fractionation. After fractionation the liquid portion is called “palm olein”, which is commonly bottled and sold as cooking oils. The solid fat portion is called “palm stearin” and it is commonly used to formulate trans-free fats.  

A method used by the food industry to increase the firmness and spread ability of oils. Vegetable oils are normally unsaturated fats which are liquid at room temperature, when hydrogen atoms are added to these oils, they become semi-solid. Partial hydrogenation is where the fat molecule is only partially saturated with hydrogen, and this produces trans fats.

RBD Palm Olein CP10 has an iodine value of 56. Because of its fatty acid composition and good oxidative stability Palm Olein CP10 is excellent to be used as liquid cooking oil and more suitable for frying.

Apart from its high-quality performance, the added advantage is it does not alter the taste or flavor of fried food as it does not have any distinct fragrance. Moreover, it leaves the meal completely dry with no dripping of oil. It has a high solid fat content which reduces the need for hydrogenation.

Palm oil’s high oxidative stability also makes it less susceptible to becoming rancid, giving it a long shelf life. The length of time a food can be kept under stated storage conditions while maintaining its optimum safety and quality.

Based on the current geopolitical landscape and recent policy announcements, the US sanctions framework significantly impacts global commodity sales in 2025:

 

  • The US Treasury's Office of Foreign Assets Control (OFAC) has intensified restrictions on Russia's energy sector, specifically targeting major oil producers and the affiliated maritime logistics networks to suppress commodity revenue streams.

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  • Compliance risk for commodity traders remains elevated due to the increased scrutiny of the shadow fleet and the potential for secondary sanctions on international actors facilitating the illicit transport of sanctioned crude oil and petroleum products.

Incoterms 2020 defines the essential responsibilities, costs, and risks for buyers and sellers in the international and domestic delivery of goods, standardizing commercial contract clauses globally. These rules, published by the International Chamber of Commerce (ICC), ensure clarity in critical activities like export clearance, carriage obligations, and the precise point of risk transfer between the two parties. A fundamental change in Incoterms 2020 was the clarification of appropriate levels of insurance coverage for the CIF (Cost, Insurance, and Freight) and CIP (Carriage and Insurance Paid To) rules, mitigating financial exposure for the cargo owner during transit. A significant structural update in Incoterms 2020 was the renaming of DAT (Delivered at Terminal) to DPU (Delivered at Place Unloaded), providing flexibility for the delivery point to be any agreed-upon location, not strictly a terminal.