Palmoilmagazine, CPO Tank
Palmoilmagazine, KUALA LUMPUR – Crude palm oil (CPO) would be cheaper in the very short because of the decreasing demands and distress selling by the main palm oil producer in the world, Indonesia.
Commodity consultant in London, LMC International, Tuesday (26/7/2022) predicted (CPO) in Bursa Malaysia Derivative Exchange hit the highest record in the early of this year because of Russia invasion to Ukraine and temporary CPO export ban by Indonesia which led the close supply of vegetable oil in the globe.
Though CPO and its derivative export ban was revoked, the exports from Indonesia is not normal still because the Government of Indonesia obliged palm oil companies to sell some of their production in Indonesia before getting export approval. This is about to control palm cooking oil price in Indonesia. This also made a stock leap and cheap price.
Consultant of LMC International in Southeast Asia, Julyan McGill said, CPO in Indonesia gets cheaper because of the abundant supply and difficulty to re-export.
Last week, the Government of Indonesia considered to eliminate its domestic market obligation and domestic price obligation because of much CPO stock and postpones to recover smallholders’ fresh fruit bunch.
“The signs were the decreasing demands and peak production in Indonesia which eventually burdens the markets,” he said as quoted from The Edge Markets in a conference in Malaysia. (T2)