Palm Oil Supplier Thailand: FOB Price, Grades & How to Buy in 2026

Thailand as a Global Palm Oil Supplier

When international buyers search for palm oil suppliers, they most often think of Indonesia or Malaysia — the two largest producers. But Thailand deserves far more attention than it typically receives. Here is why:

Thailand's Palm Oil Output: Thailand produces approximately 2.5–3 million MT of crude palm oil (CPO) per year, making it the world's third-largest palm oil producer. The country's southern provinces (Krabi, Surat Thani, Chumphon) are dominated by oil palm plantations feeding a network of modern refineries.

Refinery Advantage: What distinguishes Thailand from other origins is the concentration of refinery capacity near Bangkok. Thai refineries produce RBD Palm Oil, Palm Olein, Palm Stearin, and PFAD to tight specification ranges, backed by international quality certifications.

Halal Certification: Thailand's Halal Institute and CICOT (Central Islamic Council of Thailand) are internationally recognized. For buyers supplying Muslim markets — Middle East, Southeast Asia, Sub-Saharan Africa — Thai Halal certificates are widely accepted.

Port Access: Shipments from Laem Chabang and Bangkok Port reach Dubai in 12–15 days, India in 8–12 days, Rotterdam in 20–25 days, and West Africa in 25–35 days.

---

Palm Oil Grades Exported from Thailand

Understanding the grade hierarchy is essential before approaching any Thai palm oil supplier.

1. Crude Palm Oil (CPO) The direct output of palm oil mills — pressed from oil palm fruit bunches without refining.

Specification	Value
Free Fatty Acid (FFA)	3–5% max
Moisture & Impurities	0.25% max
Iodine Value	50–55
Color	Brown/amber
FOB Price (Bangkok, 2026)	$780–$900/MT

Buyers of CPO: Other refineries that process crude oil into RBD products, biodiesel producers, oleochemical plants.

2. RBD Palm Oil The refined, bleached, and deodorised product — the standard food-grade palm oil. Most widely traded globally.

Specification	Value
Free Fatty Acid (FFA)	≤ 0.1%
Moisture & Impurities	≤ 0.1%
Iodine Value	50–55
Melting Point	33–39°C
Color (Lovibond 5.25" cell)	≤ 3.0 Red
Peroxide Value	≤ 2.0 meq/kg
FOB Price (Bangkok, 2026)	$900–$1,050/MT

Buyers: Food manufacturers (instant noodles, snacks, baked goods), retail cooking oil blenders, margarine and shortening producers.

3. RBD Palm Olein The liquid fraction of RBD Palm Oil after fractional crystallization. Stays liquid at ambient temperatures — making it the most practical grade for retail cooking oil.

Specification	Value
Free Fatty Acid (FFA)	≤ 0.1%
Iodine Value	56–65 (liquid fraction)
Melting Point	18–23°C
Color (Lovibond 5.25" cell)	≤ 3.0 Red
FOB Price (Bangkok, 2026)	$900–$1,050/MT

Buyers: Retail cooking oil importers, frying oil distributors, food manufacturing operations needing a liquid oil at ambient temperature.

4. RBD Palm Stearin The solid fraction separated during fractionation. High melting point makes it a functional fat for solid product applications.

Specification	Value
Free Fatty Acid (FFA)	≤ 0.1%
Iodine Value	33–45 (solid fraction)
Melting Point	44–56°C
FOB Price (Bangkok, 2026)	$850–$1,000/MT

Buyers: Margarine and shortening manufacturers, confectionery fat producers, soap makers requiring palmitic acid-rich feedstock.

5. Palm FFA 70% (PFAD — Palm Fatty Acid Distillate) A byproduct of physical palm oil refining with very high free fatty acid content.

Specification	Value
Free Fatty Acid (FFA)	≥ 70%
Moisture & Impurities	≤ 1.0%
Iodine Value	45–55
FOB Price (Bangkok, 2026)	$550–$700/MT

Buyers: Soap noodle manufacturers, oleochemical plants, biodiesel producers, animal feed compounders.

---

FOB vs CIF Price: Which to Request from Your Thai Palm Oil Supplier?

All Thai palm oil suppliers quote on either FOB (Free On Board) or CIF (Cost, Insurance, Freight) terms. Here is how to choose:

Choose FOB when: - You have an established relationship with a freight forwarder - You want full control over shipping cost and carrier selection - You are comparing prices from multiple Thai suppliers (FOB allows an apples-to-apples comparison) - You are shipping large volumes where negotiating your own freight rate saves money

Choose CIF when: - This is your first Thai import and you don't have a freight forwarder - You prefer one all-inclusive price and less logistics management - You are importing a small volume (1–2 containers) where freight negotiation is not worthwhile

CIF pricing example (2026): - RBD Palm Oil: FOB Bangkok $950/MT + freight $65/MT to Dubai = CIF Dubai ~$1,015/MT - The freight component depends on your destination port and current ocean freight rates

For a full explanation of palm oil Incoterms and payment terms, see our vegetable oil payment terms guide.

---

Container Specifications: How Palm Oil Is Shipped from Thailand

Grade	Preferred Format	Volume (20ft)	Notes
RBD Palm Oil	Flexitank	20–22 MT	Must remain above 24°C; solidifies below 20°C
RBD Palm Olein	Flexitank	20–22 MT	Stays liquid at ambient temp; no heating needed
RBD Palm Stearin	200L drums or ISO tank	16 MT (drums) / 22 MT (ISO)	Requires heating at destination for discharge
CPO	ISO tank or flexitank	20–22 MT	Industrial buyers; requires heating
PFAD	Flexitank or drums	18–19 MT (flexitank)	Load at 45–55°C; solidifies below 40°C

For a deeper dive into container options, costs, and which format is right for your operation, see our flexitank vs ISO tank vs drums guide.

---

What Certifications Should Your Thai Palm Oil Supplier Have?

When evaluating any Thai palm oil supplier, insist on seeing current (non-expired) copies of:

ISO 22000:2018 — Food Safety Management System. Issued by SGS, Bureau Veritas, TÜV SÜD, or equivalent. Covers the entire production facility.

HACCP — Hazard Analysis and Critical Control Points. Often bundled with ISO 22000 or GMP.

GMP — Good Manufacturing Practices. Required for all food-grade oil exports.

Halal Certificate — Issued by CICOT (Central Islamic Council of Thailand) or DIF (Department of Islamic Affairs). Critical for Middle East, ASEAN, and African buyers. Check the certificate number and expiry date.

RSPO (optional) — Roundtable on Sustainable Palm Oil certification for buyers with ESG/sustainability requirements or for supplying EU retailers with deforestation-linked commodity policies.

SGS Pre-Shipment Inspection — not a standing certificate but a per-shipment inspection report confirming oil quality against contract specifications. Reputable Thai suppliers conduct SGS inspection on every export container.

---

Palm Oil Price Drivers: What Affects Your FOB Bangkok Quote

Palm oil is a commodity — its price moves daily based on:

1. Bursa Malaysia CPO Futures (FCPO) — Thai RBD palm oil prices are benchmarked to Malaysian CPO futures. When FCPO rises, Thai FOB prices rise within 24–48 hours.

2. Indonesian Export Policy — Indonesia controls ~60% of global palm oil supply. Export levy changes, production bans, or consumption mandates (B35 biodiesel) directly affect global supply and pricing.

3. Competing Oil Prices — Soybean oil (CBOT) and sunflower oil prices push buyers between oil types. When soy prices rise, buyers switch to palm; increased demand pushes palm prices up.

4. USD Exchange Rate — Palm oil is priced in USD. A weaker USD means cheaper palm oil for buyers in other currencies.

5. Seasonal Demand — Demand peaks ahead of Ramadan (Middle East buying surge) and before Chinese New Year (Asian stocking). Plan purchases 6–8 weeks ahead of these windows to lock in pre-peak pricing.

Practical implication for buyers: Get fresh FOB quotes before every order. Prices from 2–3 weeks ago may not reflect current market reality. Reputable Thai palm oil suppliers update their pricing daily.

---

How to Place Your First Order with a Thai Palm Oil Supplier

Step 1: Submit a Detailed RFQ Contact the supplier with: grade (e.g. RBD Palm Olein), volume (e.g. 2 × 20ft flexitank), destination port, Incoterms, and required certifications.

Step 2: Review the Proforma Invoice The PI is your contract draft. Check: exact FFA and IV specifications, packaging details, FOB price per MT, loading window, payment terms, and Halal/SGS inclusion.

Step 3: Pay Deposit and Confirm Specs For a first order, T/T 30% deposit is standard. Confirm that the COA from the actual production batch will be provided before final payment.

Step 4: Pre-Shipment Inspection Your supplier arranges an SGS pre-shipment inspection. The SGS report confirms the oil meets spec before the container is sealed. This is your quality checkpoint.

Step 5: Final Payment and Document Release Pay the 70% balance against copy B/L and documents. Originals are couriered or released via your bank depending on payment terms.

Step 6: Receive and Test on Arrival Draw samples at the discharge point. Test FFA, moisture, and peroxide value. Compare against the COA. Any deviation from contract spec is grounds for a formal quality claim.

---

Comparing Thai Palm Oil Suppliers: Key Questions to Ask

Before choosing your palm oil supplier in Thailand, ask:

"Can you provide a third-party COA from a recent SGS or Intertek-tested batch?"
"What is your registered DBD company number?" (Verify on dbd.go.th)
"Can you provide your current ISO 22000 and Halal certificates with expiry dates?"
"Do you offer an SGS pre-shipment inspection on my order?"
"How many containers per month do you currently export?"
"Can you provide two buyer references in my region?"

A legitimate Thai palm oil manufacturer will answer all of these without hesitation.

---

Start Sourcing Palm Oil from Thailand

Jit Aree Vegetable Oil is a direct palm oil manufacturer and exporter in Thailand. We supply RBD Palm Oil, Palm Olein, Palm Stearin, Crude Palm Oil, and PFAD (Palm FFA 70%) to wholesale buyers in 65+ countries.

Our palm oil FOB pricing starts from $780/MT (CPO) and $900/MT (RBD). All grades are Halal certified, ISO 22000 compliant, and covered by SGS pre-shipment inspection.

Request a palm oil FOB price quote — specify grade, volume, packaging, and destination port. We respond within 24 hours with current pricing and a Proforma Invoice.