InfoSAWIT, JAKARTA – The markets get the new situation because of many regulations about tariff barrier and non – tariff barrier which the CPO importer countries use to tighten its usage. India which runs barrier tariff to regulate the vegetable oil trade now tightens it by non-tariff barriers. One of the regulations is the soybean preference which could increase to be used in the future.
Besides India has new dynamic because of conflict with Malaysia. The Kashmir conflict really influences the CPO markets in India.
China has new issue, the corona virus. Because of it, hundreds of people should die and this automatically influences the CPO import to the country. The country has dynamic fluctuation too.
The CPO markets would keep decreasing after the monthly referential price in February 2020 reached US$ 839 per ton compared to the January which was US$ 729 per ton.
The government of Indonesia through ministry of trade decided that the CPO Out Fee in February is US$ 18 per ton (Read: https://www.infosawit.com/news/9641/februari-2020--bk-minyak-sawit--cpo--ditetapkan-us--18-ton).
This Article once published in Editorial, InfoSAWIT, February 2020