InfoSAWIT, JAKARTA – To supply biodiesel needs nationally reaching about 9 million tons, Indonesia still got big things to do to supply the material from crude palm oil (CPO) up to 3 million tons by the end of 2020. The needs would directly impact to the CPO stocks in the world because 2020 production keeps decreasing compared to the previous year.
Many plantations in Indonesia are difficult to produce maximally because of the bad agro-climate in last year (the long dry season).
On the other hand, palm oil plantations nationally in the last two years were not maximally nursed because in the same period, the CPO price got cheaper. This made the companies stagnant or got losses for some time.
By the end of 2019, some experts predicted the cheaper CPO price in 2020 (Read InfoSAWIT, November 2019). Pusat Data Bisnis InfoSAWIT (PDBIS) also predicted that the CPO price would be US$ 770/ton in 2020 within the consideration of stagnancy or CPO decreasing production nationally, and the annual market progress in the world.
In the same month of 2020, the latest news from Malaysian Exchange revealed that the CPO for January 2021 delivery would be RM 3238/ton or about US$ 784/ton within 1 RM reaching 0,24 US$. The better CPO price in the early of 2021 could be the description that palm oil business would be better in the next year.
This also showed that the increasing price trend until the end of 2020 would always be and hit the ultimate point in the next year. Of course this is the good news for the CPO producers namely the plantations and the smallholders nationally. The better CPO price should have available stocks too. (Editorial, InfoSAWIT, November 2020)
This article once published in InfoSAWIT, November 2020
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