Palmoilmagazine, JAKARTA – Crude palm oil (CPO) price in the globe gets increasing. Though it was reaching up to US$ 1.829 (26/5), by the late of May 2022 it was US$ 1.765/ton.
After President Joko Widodo revoked CPO and its derivative product export ban, CPO exports of Indonesia once got increasing and significant selling price up to US$ 1.829/ton. But the traders hit big disappointment because many exporters of Indonesia could not get Export Approval because they have to fulfill domestic market obligation (DMO) up to 20% as the material for bulk palm cooking oil.
Compared when the CPO and its derivative export ban revocation on 20 May, CPO was US$ 1.380/ton. It was increasing US$ 385/ton by the late of May (31/5/2022).
The increasing selling price for about 28℅ could be the strong signal for CPO exports which also got increasing demands in the globe.
Malaysian Palm Oil Council (MPOC) predicted, CPO selling price on (23/5/2022) was RM 6.072 and increased up to RM 6.304 by the late of May 2020 (31/5/2022).
Quoted from Pusat Data Bisnis InfoSAWIT (PDBIS) predicted, the increasing export demands from many vegetable oil countries could be the strong signal that CPO gets more popular as the main source of vegetable oil in food oil. The vegetable oils, such as, soybean and sunflower are in deficit to supply.
The plan of the Government of Indonesia to escalate CPO stocks to secure the material of palm cooking oil production and downstream products nationally up to 10 million tons, could be an issue for CPO importer countries to fulfill their needs.
The strongest signal is from India for banning wheat exports would raise conflicts of food needs, including palm cooking oil globally in the future.
For information CPO and palm kernel oil (PKO) stocks in the world depend on Indonesia for more than 55%. The increasing annual needs on vegetable oil globally can be from CPO in general. The markets would be lack of vegetable oil supply namely CPO from Indonesia in the future. (T1)