US CPKO Prices Rise on Logistics Uncertainty, Improved Supply

The US Crude Palm Kernel Oil (CPKO) market experienced a 0.40% increase in prices during late August, as elevated Southeast Asian replacement costs and logistics uncertainty offset improving physical availability.

According to data from the Malaysian Palm Oil Board (MPOB), palm kernel output rose 10.69% month-on-month to 422,266 tonnes in July, while palm kernel oil production increased to 199,392 tonnes.

The improvement in supply fundamentals provided a bearish counterweight to elevated CPKO replacement costs, but CPKO sellers remained attentive to broader palm oil fundamentals.

Logistics emerged as an increasingly important factor for the CPKO CIF/Houston market due to tighter restrictions announced by the Panama Canal Authority on August 24. The restrictions increased the risk of vessel delays and higher freight costs for Asia-US Gulf shipments, supporting delivered CPKO replacement values.