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... bakery industry. Further information The oil is extracted from the fruit of the babassu palm, which grows in South America. The fatty acid composition resembles that of coconut oil. The oil is predominantly made up of saturated fatty acids and is solid at room temperature. However, it melts with slight heating. Due to the high content of lauric acid, babassu oil is also excellent for facial creams. It is also commonly used in soaps or shampoo bars.