The Palm Oil Grade Decision: Why It Matters More Than You Think
Sourcing the wrong palm oil grade for your application can cost you far more than the price difference between grades. Using CPO when your process requires RBD palm olein creates food safety and quality issues. Importing RBD palm oil when PFAD meets your industrial needs means you're paying 60–90% more than necessary. And specifying palm olein when you need stearin results in wrong-consistency products and processing failures.
This guide breaks down every palm oil grade exported from Thailand, with the technical specifications, price, applications, and a simple decision framework to identify which grade your business actually needs.
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The Palm Oil Product Family: An Overview
All palm oil grades originate from the same source — the oil palm fruit (Elaeis guineensis). What differentiates the grades is how much processing has been applied after the initial pressing:
- CPO (Crude Palm Oil) — pressed from fruit, not refined; orange-red, high FFA
- RBD Palm Oil — CPO refined, bleached, deodorized; cream-colored, food grade
- RBD Palm Olein — liquid fraction of RBD Palm Oil; stays liquid at ambient temp
- RBD Palm Stearin — solid fraction of RBD Palm Oil; firm solid at room temp
- Palm FFA 70% (PFAD) — byproduct captured during deodorization; high FFA industrial product
Each grade has different pricing, handling requirements, shelf life, and regulatory status. Understanding the refining and fractionation process is key to selecting the right grade.
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Grade 1: Crude Palm Oil (CPO)
What it is: The direct output of palm oil mills, produced by sterilizing, stripping, and pressing oil palm fruit bunches. CPO is orange-red due to high beta-carotene content, has a characteristic palm fruit odor, and contains 3–5% free fatty acids from natural enzymatic activity in the fruit.
Key Specifications:
| Parameter | Value |
|---|---|
| Free Fatty Acid (FFA) | 3–5% max |
| Moisture & Impurities | 0.25% max |
| Iodine Value | 50–55 |
| Color | Orange-red to brown-amber |
| Melting Point | 33–38°C |
FOB Bangkok Price (2026): $780–$900/MT
Who buys CPO: - Vegetable oil refineries with in-country refining capacity (India, China, Pakistan) - Biodiesel producers using CPO as feedstock (directly esterified to FAME) - Oleochemical plants processing raw palm oil into fatty acids - Buyers who want the price advantage of unrefined crude and have their own refining plant
Who should NOT buy CPO: Any buyer intending to sell or use the oil directly for human consumption. CPO requires full RBD refining before it is food-safe and palatably acceptable.
Handling: CPO solidifies below ~30°C. Requires heated storage at destination if the climate is cool.
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Grade 2: RBD Palm Oil (Refined, Bleached, Deodorized)
What it is: CPO processed through neutralization (FFA removal), bleaching with activated earth (color removal), and steam deodorization (odor removal). The result is a cream-to-white colored, neutral-tasting semi-solid oil that is fully food-grade.
Key Specifications:
| Parameter | 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 Bangkok Price (2026): $900–$1,050/MT
Who buys RBD Palm Oil: - Food manufacturers blending cooking oil (RBD palm oil is blended with liquid oils for cooking oil products) - Bakery and biscuit manufacturers requiring a semi-solid fat that is heat-stable - Margarine and shortening producers (blended with hydrogenated or interesterified fats) - Confectionery manufacturers using palm oil in coatings and fillings - Instant noodle producers using RBD palm oil for palm-fried noodle blocks
Difference from Palm Olein: RBD Palm Oil is semi-solid at typical tropical ambient temperatures (above 25°C it softens; below 24°C it firms significantly). In markets where oil is stored in air-conditioned warehouses or cool climates, RBD palm oil may partially solidify in flexitanks during transit — this is reversible. For applications requiring a pourable liquid oil at ambient temperature, Palm Olein is the better specification.
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Grade 3: RBD Palm Olein
What it is: The liquid fraction of RBD Palm Oil, separated through fractional crystallization — chilling the oil to around 18–22°C and filtering out the solid fraction (stearin). Palm Olein has a higher iodine value (more unsaturated) and lower melting point than the base RBD Palm Oil, making it liquid at typical tropical ambient temperatures.
Key Specifications:
| Parameter | Value |
|---|---|
| Free Fatty Acid (FFA) | ≤ 0.1% |
| Iodine Value | 56–65 (higher = more liquid) |
| Melting Point | 18–23°C |
| Color (Lovibond 5.25" cell) | ≤ 3.0 Red |
| Peroxide Value | ≤ 2.0 meq/kg |
FOB Bangkok Price (2026): $900–$1,050/MT (same range as RBD palm oil)
Who buys RBD Palm Olein: - Retail cooking oil importers and bottlers — palm olein is the world's most widely sold cooking oil in tropical and subtropical markets - Restaurant and foodservice oil distributors - Food manufacturers requiring a liquid oil for mixing, coating, and emulsification applications - Buyers in India, China, Indonesia, Vietnam, and the Philippines where retail cooking oil is predominantly palm olein
When to choose Olein over RBD Palm Oil: If your application requires the oil to remain pourable at ambient temperature (20–35°C), specify Palm Olein. If you are blending the oil into a product where solidification doesn't matter (e.g., biscuit dough, margarine), RBD Palm Oil is equivalent and sometimes slightly cheaper.
Double fractionated olein (IV 60+): For buyers in cooler climates who need palm olein to stay liquid at temperatures below 20°C, request double-fractionated palm olein with an iodine value of 60 or higher.
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Grade 4: RBD Palm Stearin
What it is: The solid fraction remaining after liquid olein has been separated. Palm Stearin has a much higher melting point (44–56°C) and lower iodine value (33–45) — it is a firm solid at room temperature and requires heating to handle in liquid form.
Key Specifications:
| Parameter | Value |
|---|---|
| Free Fatty Acid (FFA) | ≤ 0.1% |
| Iodine Value | 33–45 |
| Melting Point | 44–56°C |
| Color (Lovibond 5.25" cell) | ≤ 3.0 Red |
FOB Bangkok Price (2026): $850–$1,000/MT (slightly lower than RBD due to lower IV)
Who buys RBD Palm Stearin: - Margarine and shortening manufacturers who need a solid structural fat - Confectionery companies producing compound coatings, cream filler bases, and chocolate-alternative coatings - Soap manufacturers using stearin as a palmitic acid-rich feedstock for hard soap bars - Buyers blending stearin with liquid oils to produce specific textural fat blends (e.g., for bakery applications)
Handling requirements: Palm Stearin is a solid at room temperature and must be melted (above 55°C) for filling and pumping. At destination, heated storage tanks or a steam-heated melting system is required. Typically shipped in 200L steel drums (palletized for standard forklifts) or ISO tank containers with built-in heating coils.
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Grade 5: Palm FFA 70% (PFAD — Palm Fatty Acid Distillate)
What it is: Captured during the steam deodorization step of physical palm oil refining. While refinery operators aim to preserve the refined oil's neutral odor and low FFA, they simultaneously capture the volatile fraction — which is PFAD. PFAD has a minimum FFA content of 70% (primarily palmitic and oleic acids) and is not suitable for direct food use.
Key Specifications:
| Parameter | Value |
|---|---|
| Free Fatty Acid (FFA) | ≥ 70% (as palmitic acid) |
| Moisture & Impurities | ≤ 1.0% |
| Iodine Value | 45–55 |
| Saponification Value | 195–205 mg KOH/g |
| Fatty Acid Profile (typical) | C16:0 ~45%, C18:1 ~35%, C18:0 ~5%, C18:2 ~10% |
FOB Bangkok Price (2026): $550–$700/MT — the most affordable palm product category
Who buys PFAD / Palm FFA 70%: - Soap manufacturers: PFAD is the primary raw material for soap noodle production in South Asia, Southeast Asia, and Africa. The palmitic acid content (C16:0) gives bar soap hardness, while oleic acid (C18:1) provides lather. Palm FFA 70% from Thailand is priced 35–45% below RBD palm oil — a major cost advantage for soap producers. - Oleochemical plants: PFAD is hydrolyzed (split) into individual fatty acids for use in detergents, lubricants, personal care ingredients, and polymer additives. - Biodiesel producers: PFAD is esterified to fatty acid methyl esters (FAME biodiesel). The high FFA content actually makes it a more efficient biodiesel feedstock than refined oil in some esterification processes. - Animal feed manufacturers: PFAD delivers approximately 8,000 kcal/kg as an energy supplement for ruminants and poultry feed.
Handling requirements: PFAD solidifies below 40°C and must be loaded into flexitanks or ISO tanks at 45–55°C. At destination, heated storage tanks (heated to 45–50°C) and heated transfer piping or steam-traced lines are required. Not suitable for ambient temperature bulk storage.
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Grade Comparison Table
| Feature | CPO | RBD Palm Oil | RBD Palm Olein | RBD Palm Stearin | PFAD |
|---|---|---|---|---|---|
| Food Grade | No (requires refining) | Yes | Yes | Yes | No (industrial) |
| FFA | 3–5% | ≤0.1% | ≤0.1% | ≤0.1% | ≥70% |
| Melting Point | 33–38°C | 33–39°C | 18–23°C | 44–56°C | 40–45°C |
| State at 25°C | Semi-solid/solid | Semi-solid | Liquid | Solid | Solid |
| FOB Bangkok | $780–900 | $900–1,050 | $900–1,050 | $850–1,000 | $550–700 |
| Shipping | Flexitank | Flexitank | Flexitank | Drums/ISO tank | Flexitank (heated) |
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Decision Framework: Which Grade Does Your Business Need?
You need FOOD-GRADE oil for human consumption: → RBD Palm Oil, RBD Palm Olein, or RBD Palm Stearin (depending on required consistency)
You need a LIQUID oil at ambient temperature (20–35°C): → RBD Palm Olein (IV 56–65)
You need a SEMI-SOLID fat for bakery, biscuits, or blending: → RBD Palm Oil
You need a FIRM SOLID fat for margarine, shortening, or compound coatings: → RBD Palm Stearin
You have your own refinery and want the lowest-cost CRUDE feedstock: → Crude Palm Oil (CPO)
You manufacture SOAP, OLEOCHEMICALS, BIODIESEL, or ANIMAL FEED: → Palm FFA 70% (PFAD) — the most cost-effective option at $550–700/MT
You want to MINIMIZE COST for industrial use: → PFAD (lowest), then CPO, then RBD grades
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Getting a Quote for the Right Grade
Jit Aree Vegetable Oil exports all five palm oil grades from Thailand: CPO, RBD Palm Oil, RBD Palm Olein, RBD Palm Stearin, and PFAD (Palm FFA 70%). All food-grade products carry Halal (CICOT), ISO 22000, HACCP, and GMP certification with SGS pre-shipment inspection.
MOQ is 1 × 20ft container for all grades. Mixed-grade orders (e.g. olein + PFAD in separate containers in one shipment) are accepted.
Request a palm oil grade quote — tell us your application, required volume, destination port, and packaging preference. We'll send you a Proforma Invoice with current FOB Bangkok pricing within 24 hours.
See also: Palm Oil Export from Thailand — Full 2026 Guide | Palm FFA 70% Export Guide | Palm Oil Specifications Explained