PalmOilMagazine, JAKARTA – Crude palm oil (CPO) which gets more expensive since June 2020 happens for the supply distraction in main vegetable oil and palm oil producer centers. For the demands surpassing the stocks in the third quarter of 2020, CPO price in Malaysia Derivatives Exchange was more than RM 3.000 and sold about RM 3.064 per ton or precisely in the midst of October 2020, or 38% higher than it in the same period last year. In the midst of November 2020, CPO hit the highest level or about RM 3.490 per ton.
Besides the supply, CPO price was influenced by some factors. In the report of Crude Palm Oil Producing Countries (CPOPC), climate, Covid-19 pandemic, and workers influenced the limited activity in the plantations in Malaysia. These are the consideration.
Palm oil gets luckier because other kinds of vegetable oil have lower numbers of supply, namely from sunflower and rapeseed which in the end, vegetable oil price gets more expensive. This influenced CPO to be more expensive too.
Covid-19 pandemic which hit in the early of 2020 urged lockdown in some consumer countries. But it was temporary because in the second quarter of 2020, the main palm oil importer countries started to get more stock. Besides the lack of ex – cooking oil and animal fat because of pandemic really caused the biodiesel producers substitute their material to vegetable oil. This urged the increasing demands of CPO in the global.
CPOPC also told that Covid-19 pandemic did not severely impact to vegetable oil demands including palm oil. It happened for the vegetable oil is the daily needs both for the needs in kitchen, cleansing, or renewable material in the world.
The facts also showed that the increasing oleochemical products helped vegetable oil demand, including palm oil. The derivative oleo-chemical products, such as, glycerin, fatty acid, methyl ester are the materials to produce sanitizer, detergent, and soap. They were increasing because many are aware of better hygiene and health protocols told by the government.
“Ever since Covid-19 pandemic started, the consumers started changing their behavior. If they used to eat in restaurant, café, and others, now they mostly cook and eat at their homes. The advantage of the changing behavior is that the consumers substitute their vegetable oil more regularly because the companies sold in smaller package to the consumers because the lower demands from the restaurant,” CPOPC reported as what PalmOilMagazine got. (T2)