InfoSAWIT, JAKARTA –During the first semester 2018, the crude palm oil (CPO) was about US$ 605 – US$ 695 per metric ton. The CPO price was globally pressed since the early days in December 2017 to the first semester 2018. It was never US$ 700 per metric ton.
“The stagnant CPO price globally happened for the abundant stock of vegetable oil in the producer countries,” Executive Director of Indonesian Palm Oil Association (IPOA), Mukti Sardjono said in the official statement to InfoSAWIT.
The abundant stocks could be seen from CPO and its derivative export volume in June 2018 and they increased 7% compared to those in May 2018 or from 2,14 million tons to be 2,29 million tons.
In June, India significantly increased the CPO import reaching 95% compared to it in the previous month or from 240,16 thousand tons to be 467,81 thousand tons. In March, India increased the incoming tax tariff on vegetable oil at the highest level and made the import signficantly decreased, especially in May.
“The massive population and the high consumption on vegetable oil should be done, the expensive incoming tax was no longer running because of domestic needs that should be fulfilled,” Mukti Sardjono said.
The increasing CPO and the derivative import volume from Indonesia in June compared to May 2018 also took place in China 35%, Uni Eropa 24%, America 9%,and Pakistan 2%.
The CPO and PKO production in June 2018 may be decreasing 7% compared to the previous month or from 4,24 million tons to be 3,95 million tons. Though in June the exports increased, it could not afford to decrease the stock still. Palm oil stock keeps increasing and got its highest numbers, 4,85 million tons in June.(T2)