Jakarta–Palm oil has the same luck as soybean oil having more expensive price. Soybean oil in the world commodity exchange falls down 8% in last two weeks. Good weather in United States (US) pushes the planting activities. 78% of the soybean harvest in US has been planted since last Sunday. It is higher than last 5 years which was 70%, US Agriculture Departement said. Meanwhile, the palm oil price in last two weeks decreases 6%.

As it is written in The Wall Street Journal, the other factor which decreases palm oil prices is the pessimistic prediction about the dry season which will take some time in the beginning of this year. The dry season could decrease the production of Indonesian and Malaysian palm oil for both countries are the producers of 85% of global palm oil.

The prediction is not proven because palm oil productions are better than what is estimated. The productions are better than the last year ones. Analyst Morgan Stanlay, Charles Spenser said, the drought in February and March had no impact to the productions of big companies, such as, Felda Global Ventures Holdings and Astra Agro Lestari. In April, their productions are higher in 2013 in the same period.

It was predicted, palm oil demand was higer when Ramadhan would come by the end of June. But the prediction did not boost the selling. Cargo observer report, Malaysian export activities got slower in May. Indonesia itself had decreased 23% of palm oil export in April than in March. This contributes to the deficit of the balance trade about US$ 2 billions in April.

But palm oil should hope to the raw oil. Indonesia and Malaysia are boosting the utilization of palm oil to be conversed in to biodiesel. Both countries are decreasing the subsidy of fuel, both diesel and gasoline.(T2)