Crude Palm Oil

The Indian government announced a reduction in basic customs duty rates on vegetable oil imports, covering both crude and refined oils, including palm oil, soybean oil, and sunflower oil, in a bid to curb soaring prices ahead of the major festival season. Crude palm oil and crude soybean oil will see duties cut from 10% to 5%, while refined palm oil and refined soybean oil will drop from 32.5% to 27.5%. Crude sunflower oil will be reduced from 10% to 0%, and refined sunflower oil from 32.5% to 22.5%. When the Agriculture Infrastructure and Development Cess and the Social Welfare Surcharge are included, the total effective import duty on crude palm oil and crude soybean oil will fall from 16.5% to 11%, and on crude sunflower oil from 16.5% to 5.5%. The tax cuts follow a nearly 20% rise in vegetable oil prices in India over the past year and are aimed at boosting consumption during the religious festival season between September and November. India currently relies on imports for about two-thirds of its total vegetable oil demand, sourcing from Malaysia, Indonesia, Argentina, Russia, and Ukraine.

Petchsrivichai Enterprise Public Company Limited, or PCE, expects total revenue for 2026 to grow 10-15% compared with the same period a year earlier, when revenue stood at 30.55 billion baht. Mr. Prakit Prasitsupphaphol, Chief Executive Officer and Managing Director, disclosed that sales in the third quarter of 2026, which falls during the rainy season, are likely to be flat compared with the second quarter of 2026, and will accelerate in the fourth quarter of 2026, the high season for economic activity, tourism, and the New Year festival. The company is confident that its gross profit margin will grow by a double-digit rate. In the first half of 2026, PCE recorded a net profit of 220.91 million baht, up 36% year on year, while in the second quarter of 2026 net profit was 214.20 million baht, up 60.2% year on year, and the gross profit margin rose to 5.4% in the first six months of 2026 from 2.0% a year earlier. This was supported by an increase in the share of high-value products, especially B100 and RBDPO. The company sells B100 according to customer orders and usage demand, with forward purchase agreements in place with Major Oil. In the production of palm cooking oil under the Rinthip brand, the company has expanded its distribution channels to cover distributors, modern trade, and modern retail outlets such as 7-Eleven, CJ More, and department stores nationwide, while also targeting Japanese restaurants, which place importance on raw material quality and food standards. The company is also closely monitoring the El Nino phenomenon, and assesses that palm output in 2027 will decline by about 10-15%. It is therefore continuing to expand palm fruit purchasing points from farmers' plantations, along with a plan to expand the phase 3 extraction plant, raising fresh palm fruit processing capacity from 150 tons per hour to 225 tons per hour and increasing CPO production capacity from 300 tons per day to 700 tons per day, so as to produce more than 900 tons of crude palm oil per day on its own. It also has a project to upgrade its refinery with CPO Washing and Double Refine technology to raise output to High-Quality RBDPO to serve the premium market, with commercial operation scheduled for the second quarter of 2027.

Palm oil prices rose, with benchmark crude palm oil futures in Kuala Lumpur climbing as much as 0.9% to 4,975 ringgit ($1,229) per ton, as traders worried that wildfires raging in Indonesia, the world's largest palm oil producer, could affect supply. David Ng, a senior trader at Iceberg X Sdn Bhd, said the market is concerned about dry weather and haze affecting yields. Toxic haze has blanketed much of Southeast Asia, stalling harvesting in some areas as workers are mobilized to fight fires, and palm fruit growth may be affected by smoke and reduced sunlight. This year's severe El Nino has worsened the situation, with the ASEAN Specialised Meteorological Centre (ASMC) saying conditions are conducive to wildfires and transboundary haze, but increased rainfall in October is expected to provide some relief. More than 202,000 hectares on the islands of Borneo and Sumatra have been damaged by fires, while pollution has surged in Indonesia, Singapore, Malaysia, and the Philippines.

Phetch Srivichai Enterprise Public Company Limited (PCE) expects several supporting factors in the second half of 2026, including increased demand for B100 biodiesel following the government's policy to adjust diesel to B7 and allow B20 as an alternative, as well as the expansion of its edible palm oil production capacity from 300 tons per day to 700 tons per day, which will be completed in the fourth quarter of 2026. Additionally, the company is promoting its 'Rintip' brand to consumers through Modern Trade channels and all 7-Eleven branches. The company reported a net profit of 214.2 million baht in the second quarter of 2026, up 59.5% from the same period last year, with total revenue of 7,057.8 million baht. For the first six months, net profit was 220.9 million baht, up 36.0%, and EBITDA margin increased to 4.5% from 1.9%, reflecting a shift in product mix towards value-added products such as B100 and RBDPO, which are expected to enhance revenue quality and profitability in the long term.

Phetchasewee Enterprise Public Company Limited, or PCE, has expressed confidence that its business in the second half of 2026 will continue to grow, supported by demand for B100 biodiesel in line with government policy, and the expansion of its cooking palm oil production capacity from 300 tons per day to 700 tons per day, more than doubling output. The expansion is expected to be completed within the fourth quarter of 2026 to accommodate a growing customer base in the food industry and the distribution channels for its "Rintip" brand, which is now available at all 7-Eleven stores nationwide. Meanwhile, the company is constructing Phase 3 of its crude palm oil mill, which will increase fresh fruit bunch processing capacity from 150 tons per hour to 225 tons per hour, enabling it to produce more than 900 tons of crude palm oil (CPO) per day, with commercial production slated for the second quarter of 2027. Additionally, there is a refinery upgrade project incorporating CPO Washing and Double Refine technologies to elevate semi-refined palm oil to high-quality RBDPO, catering to the premium food market, also set for commercial operation in the second quarter of 2027. These investments are part of the company's value-enhancement plan under the Stock Exchange of Thailand's JUMP+ program, aimed at strengthening its fully integrated palm oil business chain and creating higher-value products in the long term.

SMO expects its Q3/2026 performance to recover from the previous quarter, benefiting from increased crude palm oil exports as exchange rates stabilize. The company is investing 130 million baht to build a new palm kernel oil production plant with a capacity of 300 tons per day to support future growth. Meanwhile, its bio-power business remains constrained by a PPA quota of 14 megawatts, but the company is ready to compete for new PPAs in 2027 to expand its biomass and biogas capacity across three branches. If approved, this would nearly double its total production capacity.

TEGH has revealed that its plan to list its subsidiary, Thai Eastern Bio Power (TEBP), on the stock exchange is still moving forward, after the Securities and Exchange Commission (SEC) approved an extension of the IPO offering period. The company will consider the capital market conditions and various beneficial options, while also assessing the outlook for the second half of 2026, which remains positive due to increased rubber orders from India, Europe, and the United States, as well as the EUDR measures that are not expected to be postponed. As a result, revenue for 2026 is expected to grow by 10% to reach 22 billion baht, a new record high. The volume of rubber block sales is expected to be around 260,000 tons, up 4% from the previous year. Meanwhile, the crude palm oil business plans to increase production capacity by another 50% within this year, and the renewable energy business has a phase 2 biogas capacity expansion project that will add 297,000 tons per year of organic waste management capacity and 23.76 million cubic meters per year of biogas production capacity. For the second quarter of 2026, the company reported total revenue of 4.405 billion baht and net profit of 165 million baht, up 104% from the previous quarter.

The Ministry of Industry is accelerating the economic upgrade of five southern provinces—Songkhla, Satun, Yala, Pattani, and Narathiwat—by linking raw material bases to high-value processing, focusing on rubber, seafood, palm oil, bio-based, and halal industries to penetrate Malaysia, ASEAN, and Muslim markets. It will also use the Single Window and e-License systems to reduce business procedures. Data from the Office of Industrial Economics (OIE) shows that in the first six months of 2026, Satun's industrial index expanded by 26.5%, while Songkhla and Yala grew only 0.3% and 0.5% respectively. Narathiwat contracted 1.1%, and Pattani contracted 15.2%, while the South as a whole contracted 2.4%. Industry Minister Varawut Silpa-archa said development must connect large enterprises with SMEs, community enterprises, and farmers, from standards development, technology, processing, to market channels, so that local people benefit directly, and use Songkhla as a trade and logistics hub with Malaysia and ASEAN.

Bualuang Securities stated that Thai Vegetable Oil Public Company Limited, or TVO, reported Q2/2026 net profit of 877 million baht, up 35% year-on-year and 24% quarter-on-quarter, with revenue of 8.28 billion baht, up 24% year-on-year and 7% quarter-on-quarter, supported by higher sales volume after capacity expansion since late 2025. Sales of soybean meal and soybean oil increased more than 20% year-on-year, despite lower average selling prices. Gross margin recovered to 13.7% from 10.8% in Q1/2026, but still below 16.1% in Q2/2025. For Q3/2026, the outlook remains positive due to slightly higher selling prices for soybean meal and soybean oil, while soybean costs are expected to remain stable, supporting margins. On the supply side, global soybean supply for 2026/27 remains high, with the USDA raising its US production forecast to 4.52 billion bushels and ending stocks to 320 million bushels. Brazil is a key variable due to El Niño uncertainty, while demand from China continues to support prices, with US new-crop soybean outstanding sales at 8.3 million tons, of which about 3.1 million tons are to China. The soybean oil business is also supported by high vegetable oil prices, with palm oil up 17% YTD and soybean oil up 40% YTD as of mid-August. In 1H2026, soybean oil accounted for 33% of revenue and soybean meal 53%, while 88% of sales came from the domestic market. The research house views that short-term profit trends remain good, but consensus expects 2027 profit to decline 13% year-on-year, making TVO's key highlight its dividends, with consensus expecting a dividend yield of around 7% per year, while the stock trades at a 2027 PER of around 10.3 times.

Phetch Srivichai Enterprise or PCE, Thailand's leader in the integrated palm oil industry, reported net profit of 214.2 million baht for the second quarter of fiscal year 2026, up 59.5% from the same period last year, despite a 37.6% decline in sales revenue to 6,972.4 million baht. Gross profit surged 114.8% to 432.8 million baht, lifting the gross margin to 6.2% from 1.8% a year earlier. The main drivers were an increased proportion of value-added products such as B100 and RBDPO, supported by rising domestic biodiesel demand. Meanwhile, revenue from the domestic market rose to 74.9% of total revenue, up from 36.7% in the previous year. For the first six months, net profit stood at 220.9 million baht, up 36.76% from the same period last year, despite a 26.9% decline in total revenue, reflecting a value chain management strategy from upstream to downstream that helped offset the impact of lower palm fruit yields.

Patra Group Public Company Limited (PHAT) signals a strong recovery in the second half of the year, boosted by the high season for palm oil production. The company is also moving forward with plans to increase its crude palm oil production capacity by 50% to 90 tons per hour, with operations expected to begin in the third quarter of 2026. It is also aggressively expanding into international markets, targeting foreign revenue to account for 40% of total revenue in 2026 and 55-60% in 2027. The company is confident that revenue in 2026 will reach 3,000-3,500 million baht, a growth of 35-40% from the previous year. Mr. Somnuk Chantawong, Chief Executive Officer, revealed that the growth is supported by palm oil production, which is expected to increase by more than 20 million tons, especially during September to November, which is the peak production season. Meanwhile, the company is in talks with several new international customers and expects clarity within the second half of the year. After raising funds on the Market for Alternative Investment (mai), the company has increased working capital to support expansion. As for the investment plan for the Crude Palm Kernel Oil (CPKO) extraction plant, it is expected to be completed in the third quarter of 2027 and start generating revenue in the fourth quarter of 2027, which will serve as a new growth engine to drive long-term growth.

The Department of Internal Trade says oil palm prices received by farmers have remained at good levels since March 2026, not below 7 baht per kilogram and peaking at 8.45 baht per kilogram, for about 25 weeks, thanks to system-wide balance management and the promotion of palm oil use in the energy sector. Mr. Witthayakorn Maneenet, Director-General of the Department of Internal Trade, said after the 7th meeting of the Oil Palm Balance Management Subcommittee in 2026 that continued use of palm oil in the energy sector has helped create domestic demand and benefited farmers. For September 2026, the meeting approved the second approach for balance management, with ending stocks expected at about 313,000 tonnes and an export framework of about 70,000 tonnes, which is not lower than the roughly 65,000 tonnes proposed by exporters.

Patara Group Public Company Limited, or PHAT, began trading on the Market for Alternative Investment, or mai, on its first day, targeting 2026 revenue of 3 to 3.5 billion baht, up from the previous year's revenue of 2.37751 billion baht, as first-half revenue already reached 1.5 billion baht and the second half is the high season for the crude palm oil business. Chief Executive Officer Somnuek Chantawong said the company is in talks with about 10 new refinery customers in India and China, with clarity expected this year, and expects this year's export revenue share to double from the previous year, or account for 40 percent of revenue, rising to 50 to 60 percent in 2027 if all negotiations succeed. Peeranat Sawatdichan, Chief Executive Officer of Accounting and Finance, said that after the capital raise, the debt-to-equity ratio fell to 0.76 times from 1.04 times.

Shenwan Hongyuan Research noted that the probability of a super El Niño event has recently risen to 95%, and extreme weather could significantly disrupt global agricultural supply. A strong El Niño will cause drought and lower output in major natural rubber and palm oil producing areas in Southeast Asia, while sugarcane production in India and Thailand will come under pressure, supporting expectations of higher sugar prices. Core blueberry producing regions in Peru and Chile also face output reduction risks, pushing prices higher in the fourth quarter. Historical experience shows that such climate events often reshape the supply and demand landscape for some tropical cash crops through weather premiums, thereby lifting inflation expectations. As of 10:41 a.m. on August 20, 2026, the China National Grain Industry Index tracked by the ChinaAMC Grain ETF was down 2.47%, but the ETF had seen four consecutive days of net capital inflows.

Phatra Leasing, or PHAT, reported first-half 2069 results with total revenue of 1.53 billion baht, up 51.85% from the same period last year, and net profit of 2.73 million baht, down from 66.69 million baht a year earlier, as the delayed start of the rainy season kept fresh palm fruit volumes from April to June below 2025 levels and raw material costs rose. However, the company swung from an off-season loss of 54 million baht in 2025 to a profit of 2.73 million baht this year, supported by expansion of crude palm oil export markets, with export volume of 28,129.98 tonnes in the first half. The peak production season is expected to shift into the second half, according to forecasts from the Department of Internal Trade under the Ministry of Commerce, while production capacity has increased from 60 tonnes of fresh palm fruit per hour to 90 tonnes per hour, or 50% higher, following the IPO fundraising.

Prime Minister and Interior Minister Anutin Charnvirakul confirmed that the appointment of Chanthanon Wannakhajorn as the new permanent secretary of the Ministry of Energy, under the cabinet resolution of 18 August, is about putting the right person in the right job, not about politics. The main considerations are the individual's knowledge, ability, and experience. Anutin said that Chanthanon, who comes from the Ministry of Agriculture and Cooperatives, has a background in economic crop production systems, agricultural supply chains, and market mechanisms. This is directly relevant to promoting agricultural crops such as palm, sugarcane, and cassava to become energy crops, supporting domestic demand for bioenergy. The government places importance on restructuring Thailand's energy system to reduce dependence on imported oil and fossil fuels, especially by promoting bioenergy, which requires closely linking energy knowledge with agricultural production systems. If Thailand can increase its use of bioenergy, it will help reduce oil imports, lower spending, and narrow the energy deficit. At the same time, it will increase demand for domestic agricultural raw materials, giving energy crops a continuous market and helping to raise farm-gate prices for farmers. Anutin also referred to the past oil price crisis, saying that biodiesel is an important example of using bioenergy to reduce dependence on imported oil. In the next phase, the aviation industry will need more bio jet fuel in line with global carbon reduction standards, which will require large volumes of bio-based raw materials.

Samo Thong Group Public Company Limited, or SMO, reported total revenue for the second quarter of 2026 at 3.52 billion baht, up 2.48% from the same period last year and up 46.67% from the previous quarter, with net profit of 29.56 million baht. Main revenue came from the production and distribution of crude palm oil and related products at 3.47 billion baht, accounting for 98.57% of total revenue, up 3.93% from last year and 47.31% from the previous quarter. The average selling price of crude palm oil was 38.48 baht per kilogram, compared with 33.75 baht last year, while sales volume declined due to lower fresh palm fruit harvests. The Phanom branch plant began commercial operations, increasing production capacity from 75 to 150 tonnes of fresh palm fruit per hour, and subsidiary A L Palm increased from 60 to 75 tonnes, bringing total production capacity at the end of the second quarter to 345 tonnes per hour, up 35.29% from 255 tonnes at the end of the first quarter. The company is constructing a new plant in Chang Sai subdistrict, Phra Phrom district, Nakhon Si Thammarat province, with a maximum investment value of 960 million baht, and expects crude palm oil prices to continue rising in the second half of the year due to strong global demand and Indonesia's B50 diesel policy.

Global Green Chemicals Public Company Limited reported second-quarter 2026 results, swinging to a net profit of 351 million baht, with total sales revenue of 5.566 billion baht, up 4 percent from the same period last year. This brought first-half 2026 net profit to 448 million baht. Managing Director Kritsada Prasertsukho revealed that a key factor was the government policy adjusting the biodiesel blend ratio from B5 to B7 effective 14 March 2026, which drove domestic demand for methyl ester or B100 up by 28 percent. The methyl ester business segment saw higher sales revenue in line with the increased demand, while the fatty alcohol business segment enhanced production efficiency through catalyst changes to boost capacity and reduce maintenance downtime. At the end of the quarter, the company had total assets of 11.086 billion baht and cash, cash equivalents, and short-term investments totaling over 2.332 billion baht, reflecting strong liquidity.

The Ministry of Finance is preparing to use 200 billion baht from the second tranche of an emergency decree loan to subsidize public service vehicles switching from oil to electric vehicles and to support the use of B20 fuel, in order to reduce fossil fuel consumption and help palm oil farmers. Dr. Ekaniti Nitithanprapas, Deputy Prime Minister and Minister of Finance, revealed that the project will cover intercity buses, taxis, and public vans, with the condition that old vehicles be removed from the Department of Land Transport registration system to prevent reuse. Discussions are underway with the Ministry of Transport and the Ministry of Industry to manage old vehicle scrap. The personal vehicle trade-in scheme has not yet been considered because the EV 3.5 program, which provides a subsidy of 50,000 baht per vehicle, is still in effect. Mrs. Jindarat Viriyataweekul, Director of the Public Debt Management Office, stated that the first 200 billion baht loan for the Thai Helps Thai Plus program has already disbursed 138 billion baht, with an additional 30 billion baht to be borrowed in the next one to two months. If there are remaining funds, they may be reallocated to the energy transition project. The screening committee will rigorously evaluate the project to maximize benefits within the timeframe ending in September next year.

The United Nations Food and Agriculture Organization's World Food Price Index for July came in at 131.1, up 0.6 percent from the previous month and the highest level since January 2023. Tit-for-tat attacks in the Black Sea between Russia and Ukraine, both major wheat producers, pushed up grain prices, which rose 3.4 percent month-on-month, also affected by adverse weather, with wheat prices surging 5.8 percent. Vegetable oils climbed 2.0 percent to their highest since June 2022, as higher crude oil prices driven by escalating Middle East tensions underpinned palm oil and soybean oil prices. Meanwhile, meat and dairy prices declined.

Petcharat Sriwichai Enterprise Public Company Limited, or PCE, is actively managing its product mix to increase the share of high-margin goods, as global crude palm oil prices remain elevated at around 4,500 ringgit per tonne, equivalent to approximately 38 to 40 baht per kilogram. Domestic fresh palm fruit prices stand at about 7 baht per kilogram, while local crude palm oil prices average roughly 40 baht per kilogram. The company is leveraging its strength as a fully integrated operator spanning upstream to downstream to adjust the production mix across its energy segment, edible oil segment, and value-added products. It is also expanding its fresh palm fruit purchasing network to secure raw material supply for its mills and pushing into the edible oil market under the Rintip brand through both B2B and B2C channels. For the third quarter of 2026, the company expects performance to remain stable and similar to the second quarter, with B100 sales rising 70 to 80 percent from the previous quarter, while maintaining a gross margin in the low double-digit range.

India's edible vegetable oil imports in July 2026 rose to 1.49 million tonnes, the highest level in 10 months, according to trade estimates cited by Reuters. Domestic refiners accelerated stockpiling ahead of the key festival season from August to November, when vegetable oil demand peaks for the year. Palm oil imports jumped 50% month-on-month to 733,000 tonnes, a five-month high, while soybean oil imports rose 32% to 501,000 tonnes, a seven-month high, and sunflower oil imports increased 4% to 253,000 tonnes. Combined imports of the three major vegetable oils climbed 34% from the previous month. Sandeep Bajoria, CEO of Sunvin Group, said Indian vegetable oil refiners are rapidly building inventories after months of slow imports to prepare for festival demand. GGN Research estimates that India's soybean oil imports are likely to stay above 500,000 tonnes per month in August and September, driven by competitive global prices and lower domestic crushing volumes. Analysts view the recovery in import demand from India, the world's largest vegetable oil buyer, as a factor that will help draw down palm oil stocks in Indonesia and Malaysia, support soybean oil exports from Argentina, and potentially boost global futures prices. For Thailand, PCE, a major Thai palm oil exporter, held a 23% market share of the country's total crude palm oil exports in 2025, when Thailand exported a total of 1,227,545 tonnes of crude palm oil.

Petchsrivichai Enterprise Public Company Limited, or PCE, is poised to report a sharp jump in second-quarter 2026 earnings, driven by its B100 business which has benefited from a government policy raising the biodiesel blending ratio. This has pushed B100 sales volumes up by 70 to 80 percent compared with the period when it sold B5 diesel.

Petcharat Sriwichai Enterprise Public Company Limited, or PCE, has announced a strategy to drive a sustainable oil palm supply chain, targeting becoming the first operator in the industry to achieve carbon neutrality and net zero. It is collaborating with Prince of Songkla University and the Southern Science Park to develop a network of over 3,800 smallholder farmers under RSPO standards, while expanding certified area to more than 100,000 rai by 2027. In addition, it aims to develop carbon credits with farmers to achieve certification of no less than 150,000 tonnes of carbon dioxide equivalent per year. The Nikhom Sahakon Phanom oil palm large-scale plot community enterprise, which is part of this network, has become the first group in Thailand to be registered under the T-VER standard and has already been certified for over 50,469 tonnes of carbon credits per year. These actions will help mitigate risks from the European Union's CBAM measures and prepare for Thailand's future climate laws.