Palmoilmagazine.com, JAKARTA - It is a common thing that both in the early or late days of every year, many crude palm oil (CPO) price analysts were asked to tell their analysis about CPO price.
Of course, many stakeholders wait for it because the price prediction would be the big description for them to cultivate, manage their plantations. It needs to acknowledge that palm oil plantation is one sector that needs numbers of capital and lots of workers.
The price prediction would be very useful for them – owners of palm oil plantations in national scale. One institution that always predicts CPO price is Indonesian Palm Oil Association by delivering seminar in international scale.
After the price prediction was running online for two years, in the early of November 2022, it was running offline. Many famous CPO price analysts attended to tell it.
Let us say, Thomas Mielke one founder of Oil World. In his description though not mentioning CPO decreasing price in specific, but he indicated that CPO price in 2023 would not as expensive as it was in 2022.
There are many reasons of course to say it, such as, geopolitics situation because of the war between Russia and Ukraine which eventually has something to do with sunflower oil supply from both countries in East Europe. The two are sunflower oil supply to European Union for about 70%.
Other factors are soyoil, crude oil price, and the biodiesel use trend in vegetable oil base.
Not like Thomas Mielke, James Fry of LMC International said that CPO price would be cheaper in phase in 2023. The United Kingdom analysts also delivered description that CPO price is not linear with crude oil price but would substitute to biodiesel price.
Biodiesel in palm oil – base use would have something to do with biodiesel use in the world. It a public secret that after the war happens between Russia and Ukraine, crude oil hit the most expensive one and eventually encouraged European countries seriously use biodiesel fuel in phase.
How far would it influence biodiesel price and CPO price? What is the prediction of the increasing price? James Fry told, the competition palm oil use for biodiesel and biojet fuel would influence CPO price in the future.
In fact, the war changed energy development in European Union and diverge its use which from crude oil to be biodiesel.