InfoSAWIT, KUALA LUMPUR – In the early of 2019 palm oil industries would face the better markets. In the recent report of Bloomberg, palm oil market in China is widely open. The country bought much from the official report of the government.
The trade war and swine disease that attacked the animal urged China to reduce soybean imports which is used to feed the animal. “The consumption and import of palm oil in China would increase significantly in 2019,” Chief of Fitch Solution Commodity, Aurelia Britsch said in Singapore, as quoted from www.thestar.com.my.
Britsch also said, the economical price of palm oil, the lack of domestic stock, and the decreasing import of soybean from United States of America because of the trade war urged China to get more palm oil.
The demand would be increasing in China and would make its price better again.
Palm Oil Import in China
Palm oil imports in China increased 17% from the previos year (2017) to be 6,2 million tons by September 2018, according to China National Grain and Oils Information Center. The numbers were the highest ones since 2012/2013 that reached 6,59 million tons.
Chief of Southeast Asia of LMC International Ltd., Julian Conway McGill said the high imports in China would depend on the stocks of soybean in their storage to be used as material for the woof. But it is predicted to be decreasing considering the swine disease in Africa.
But it needs to notice that in the swine year, China would play important role after the trade negotiation between President Xi Jinping and President Donald Trump. China has implemented the high import tariff to soybean from United States of America and cut off the buying.
Both countries have good negotiation progress and the tension gets decreasing. The soybean stocks in Southern America are abundant too and could decrease palm oil demands. Some analysts predicted so. (T2)