InfoSAWIT, KUALA LUMPUR – Palm oil industries could be fully operating in the fourth quarter in this year within the note, if the corona virus (Covid-19) pandemic is in control, Crude Palm Oil Producing Countries (CPOPC) noted.
CPOPC also convinced that there would be increasing demands in the global markets knowing that the lax monetary policy from the banks and stimulus package policy published by the governments. “CPOPC is optimist that palm oil industries would get better price in the second semester of 2020 from the increasing consumption globally and the lack of production after the pandemic,” CPOPC noted in the written statement recently.
The report also described that Malaysian Palm Oil Council (MPOC) predicted that CPO could be RM 2.594/ton in the second semester of 2020, and the average could be RM 2.337/ton in this year. The potential increasing price may happen if palm oil production in Indonesia and Malaysia tend to decrease from the market estimation.
Meanwhile, it would be important to make the industries more sustainable in 2020 because it could raise trade barriers from the industries or countries limiting palm oil usage.
Indonesia and Malaysia have confirmed the sustainable certification in both countries. The publication of President’s Regulation No. 44 / 2020 about Certification System of Indonesian Palm Oil Plantation is believed as the best way to solve the sustainability issue. Malaysian Sustainable Palm Oil (MSPO) is also the obligation for the palm oil plantations there.
CPOPC thought that the urgency to use more CPO in the vegetable oil fuel, namely in Indonesia, would be the good sign to reduce the stocks and increase the price. The interesting CPO price discount to other kinds of vegetable oil is the other positive factor. (T2)