InfoSAWIT, JAKARTA – The cheaper palm oil has been running since the early of 2017 thought it is in fluctuation still. In February 2017 it got cheaper and hit the cheapest one in July which was US$ 662/ton (the CIF Rotterdam).
It seems it happened in 2018. In May 2018 was the start and got cheaper.
Indonesian Palm Oil Board (IPOB) noted that the cheapest price was in October and November and influenced the cheaper fresh fruit bunch (FFB) produced by the smallholders less than Rp 1000/Kg.
Chairman of IPOB, Derom Bangun said that it happened for some factors, such as, the decreasing demands from other countries and the increasing production in the second semester 2018. It also happened for the trade war between China and United States of America and the trade barrier in the export countries from Indonesia.
This urged the domestic stock higher and Malaysia did too as the second palm oil producer in the world and pressed its price. “The CPO in Rotterdam was about US$ 600/ton but got cheaper to be less than US$ 450/ton,” he recently said in Jakarta.
He also predicted that it would be better in phase by the second quarter in April but it might be cheaper again because of the increasing production but it was not as much as it was. (T2)