CPO Products Value Increase Against Bad Weather
Selasa, 18 Maret 2014 | 11:20
The bad weather which surged some of the worldâ€™s largest countries for palm oil has brought a blessing to Indonesia in the export value increase of crude palm oil (CPO) and its derivative products of February 2014. On their latest report, Indonesian Palm Oil Producers (Gapki) revealed that the CPO and its derivatives export volume reached over 1.58 million tons last month or 13% higher than the export value made in January of 1.57 million tons.
“Indonesia’s export value increase on the products was caused by the increasing demand from major export destination countries, other than China,” said Gapki Executive Director Fadhil Hasan, Monday (3/17).
The CPO sales to India rose by 20% to 313,000 tons in February from 261,000 tons in January. The export to Bangladesh streaked by 122% to 91,000 tons from 41,000 tons, while the export to European Union and United States soared by 13% and 30%, respectively.
On the other side, the CPO export to China dropped by 12% to 254,000 tons in February from 287,000 tons in the previous month. According to Gapki, the declining was caused by high supply of vegetable oil in the country due to the import accumulation of soybean, CPO, and sunflower oil in January.
The CPO price in February ranged within US$863-US$965 per ton with the average price at US$903/ton, or 4% higher than the average price in January of US$865/ton.
“Within the last weekends, some areas in Indonesia, Malaysia, and Thailand have been hit by drought due to a scrimp rainfall. The condition has caused the speculation that El Nino will come. Yet, it is too soon to conclude,” said Fadhil.
The bad weather along with the high demand of global vegetable oil has managed to boost the vegetable oil price, including the CPO and its derivative products, from Indonesia.
Based on Gapki data, the CPO price reached US$902/ton at the second week of February and continued to increase to US$965/ton at end of last month. The price increase was spurred by the lack of CPO supply in Malaysia and world’s demand increase due to weather anomaly, which made CPO as the substitution oil becomes the target of importers.
For March, Gapki predicts that the CPO price would increase in line with the declining of global vegetable oil due to bad weather. The prices are in the range of US$965-US$1,000 per ton amid of March.
“Gapki predicts that the CPO prices will be in the range of US$970-US$1,000 per ton by end of March. Meanwhile, the Trade Ministry has determined that export reference price of March is at US$813 while the export duty is at 10.5% with the average price reference of CPO Rotterdam in the amount of US$884.”
by Wike D. Herlinda, Renat Sofie Andriani