El Nino in 2019 Could Increase the CPO up to US$ 600/ton

El Nino in 2019 Could Increase the CPO up to US$ 600/ton

InfoSAWIT, KUALA LUMPUR -  The weather, El Nino starts to happen in Indonesia. It is known from the dry area in palm oil plantations since February 2019 especially in Kalimantan.

CEO PT Tri Putra Agro Persada, Arif Patrick Rachmat said that the nowadays dry season would limit the production and be potential to increase the crude palm oil (CPO) price. It could happen that the average could be US$ 550 to US $ 600 per ton.

“Based on the prediction, El-Nino which was overlay between 1997 and 2015 was the hottest weather in the history. We saw, it could be much dry in this year,” he said in the Palm & Lauric Oils Price Outlook Conference & Exhibition 2019 as quoted from The Edge Markets.

He also said that actually the palm oil plantations, cultivated by the companies, starting from the midst of February in some regions in South Kalimantan, are dry. “We as planters should be ready. What does it mean? It is about the price for getting better,” he said.

But Thomas Mielke of Oil World said that the El Nino is a risky factor. It would indirectly influence.

“I think that it is too early to predict the El nino to happen. This is the risky factor to notice. But it indicates that it is not enough potential to take place,” Mielke said.

Meanwhile, the Head of Agribusiness Consultant of LMC International Ltd, James Fry said, the El Nino would not be potential to happen based on the analysis of Oceanic Nino Index (ONI) which is the indicator of dry season, El Nino and wet season, La Nina in Southeast Asia. “I think that it is not potential to take place, the El Nino,” Fry said. (T2)


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