InfoSAWIT, JAKARTA –According to Indonesian Palm Oil Association (IPOA), the average palm oil referential price globally decreased 2,76% or from US$ 681,30 per ton to be US$ 662,50 per ton. In July it was about US$ 650 – US$ 672,50 per ton. The cheap price increased palm oil exports from Indonesia.
In July 2017, the crude palm oil (CPO) and the derivative exports increased to be 2,4 million tons. The numbers increased 13% compared to June 2017 that reached 2,13 million tons.
The CPO exports from Indonesia increased because of the significant demands from African countries and China. The African countries increased the demands up to 54% in July compared to the previous month, or from 143,86 thousand tons to be 222,07 thousand tons. China increased its demand about 53% or from 109,08 thousand tons in June to be 167,28 thousand tons in July.
The increasing CPO demands from Indonesia also happened in Pakistan that reached 34% or from 154,41 thousand tons in June to be 206,47 thousand tons in July. The cheap CPO price might be one reason for Pakistan to increase their imports. The Middle East countries also increased their demands up to 14%.
On the contrary, India that usually bought CPO when it was cheap, had a stagnant demand. It happened for the abundant stock of CPO and soybean oil. The traders had bought the two kinds of oil in lots of numbers in the previous month to anticipate that the government of India would increase the vegetable oil import tariff.
European union had the same stagnant import. The countries increased the demand 1% only in July compared to the previous month.
“But USA noted the decreasing palm oil demands from Indonesia, about 15% or from 99,93 thousand tons in June to be 84,61 thousand tons in July,” Executive Director of IPOA, Fadhil Hasan said in the official statement that InfoSAWITgot. (T2)
