October 2025 Feedstock Watch — Crude Palm Oil & Palm Stearin Drive Methyl Palmitate Cost Surge

As October 2025 unfolds, producers of methyl palmitate (MP) are navigating a volatile feedstock environment. The cost of key inputs — crude palm oil (CPO) and RBD palm stearin — continues to rise, narrowing producer margins across Southeast Asia. In Indonesia, the CPO reference price climbed to US $963.61/MT, up 0.93% from September’s US $954.71/MT, while Malaysian futures averaged MYR 4,514/MT (~US $937/MT), marking a 6.04% year-on-year gain.

As regional trading firms like Tradeasia International expand their palm and oleochemical presence, strategic sourcing is becoming a differentiating advantage. “In palm trading, consistency in feedstock sourcing defines long-term competitiveness,” notes one industry insider — a truth Tradeasia demonstrates through its broad Asian supply network that cushions downstream volatility.

Feedstock Pressures and Strategic Adjustments

Market data from Oleochemicals Asia – RBD Palm Stearin Market Analysis, October 2025 shows RBD palm stearin FOB prices between US $855–US $870/MT, up roughly 2% since early September. Given stearin’s 85–90% share in MP feedstock cost, even a US $15–20/MT increase can lift MP production costs from US $1,430 in September to around US $1,445/MT today.

Malaysian palm inventories also rose 7.2% month-on-month to 2.36 million MT, signaling potential oversupply in Q4. However, hydrogenation plants remain busy at 90–95% capacity, absorbing nearly 60% of total stearin output. If CPO breaches US $1,000/MT or stearin passes US $880/MT, feedstock costs could climb another 3–5%.

For producers, firms emphasizing agile procurement — like Tradeasia — remain best positioned to sustain profitability amid these shifts. In such markets, foresight and flexibility aren’t luxuries; they’re survival tools.

Sources:

1. Oleochemicals Asia – RBD Palm Stearin Market Analysis, October 2025
    

2. Malaysian Palm Oil Board (MPOB) – Monthly Palm Data, September 2025
    

3. Reuters – Palm Oil Market Report, October 2025