InfoSAWIT, JAKARTA – Since it gets cheaper in 2017, palm oil price in the tahun babi tanah would get better though the abundant production would haunt the price to be cheaper again.
According to the report of Indonesian Palm Oil Association, since August 2016 the crude palm oil keeps being cheaper. It gets worse because of trade war between China and United States of America
The cheaper soybean price because of the abundant stocks also implicates to the palm oil price. In 2015 Indonesia had initiative to prevent the decreasing price by making Public Service Obligation of Palm oil Plantation Fund Management Agency to manage the crude palm oil supporting fund which is exported and it is used as the incentive to develop domestic palm oil markets.
In the beginning, it was successful but in the early of 2018 the crude palm oil got cheaper again and in the same year, it was urged to stop the supporting fund for making it much cheaper namely the fresh fruit bunch (FFB) price in the smallholders’ level.
In December 2018 the government fulfilled the proposal and the supporting fund would not be taken if it is less than US$ 570/ton. Unfortunately the policy is thought to press the palm oil price nationally from its limits.
In the early of 2019 the palm oil price started to be better because of the demands from palm oil countries. But the negotiation between China and United States of America should be a notice because it would implicate the domestic demand and the price itself.
The lobby of Indonesia to India starts running and it could increase the exports from Indonesia. knowing the needs from each country, Indonesia and India try to synergize the trade commodity.
Then what about the weather in 2019? To know more about palm oil industries in this year, dear readers could read InfoSAWIT, February 2019.(T2)