The procurement landscape for Refined, Bleached, and Deodorized (RBD) Palm Olein was anything but steady in November 2025. With Crude Palm Oil (CPO) making up a staggering 85-90% of the variable input cost, managing CPO price volatility has become the defining challenge for refinery margins this month. The market turbulence means that every percentage swing in the raw material’s price has a direct, outsized impact on the final product's profitability.

The Tight Squeeze: How CPO Swings Decimated Downstream Margins

This month, CPO futures on the Bursa Malaysia Derivatives (BMD) were stuck in a tight but frenetic range. We observed the benchmark Jan-26 contract opening near RM 4,105/MT, only to dip to a low of RM 4,015/MT by mid-month. Yet, almost immediately, it powered back up, settling at RM 4,170/MT towards the end of the third week. This rapid 3.8% swing is exactly the kind of volatility that derails budgeting. This turbulence, coupled with competitive pricing, saw the typical RBD Olein (FOB Malaysia) premium over CPO average a mere $45/MT in November 2025, a significant contraction from the comfortable $70/MT seen just one quarter prior.

In this environment of unpredictable input costs and squeezed profit windows, the difference between a successful trade and a costly inventory pile often lies in the agility of your sourcing partner. Tradeasia International, with its deep roots and extensive network in the palm oil and oleochemical sector, understands this volatile landscape intimately, enabling partners to secure competitive sourcing that turns raw material risk into a strategic advantage.

Decoding November's Price Resilience

Several key mechanisms kept the raw material from collapsing under bearish pressure. Firstly, currency played its part: the Malaysian Ringgit (MYR) slipped by 0.44% against the USD during the month's second half, effectively making CPO cheaper for dollar-based foreign buyers and providing a natural floor to prices. Secondly, external demand proved relentless. Provisional export data showed combined shipments to major markets like India and China tracking 5% higher half-on-half (HoH), demonstrating strong physical market pull. Furthermore, robust global demand for high-value palm derivatives like fatty alcohols continued to pull CPO away from pure food processing and maintaining premium pricing. Looking ahead, procurement teams must prepare for a December range of RM 4,100 – RM 4,500/MT, making sophisticated hedging strategies essential to stabilize the raw material cost base.

 

Sources:

  1. https://www.google.com/search?q=Oleochemicalsasia.com: Global Oleochemical Demand and its Upstream Pull on CPO Pricing

  2. Bursa Malaysia Derivatives (BMD): Official CPO Futures Closing Prices and Contract Specifications

  3. The Economic Times: India's Vegetable Oil Import Data and Market Outlook