InfoSAWIT, JAKARTA – The minor stock of vegetable oil in some export countries raised the global palm oil trade. For example, in August 2017, palm oil exports of Indonesia (not include biodiesel and oleo-chemical) increased 24% orreached 2,98 milliontonscompared to July that reached about 2,40 milliontons.

According to Indonesian Palm Oil Association (IPOA), the increasing palm oil exports happened in China that significantly increased the demands. In August, the country increased its demands reaching 169% orfrom 167,28 thousandtonsin July to be 449,20 thousandtonsin August. “This was the highest demand in 2017. China increased palm oil exports to fulfill its domestic needs,” General Secretary of IPOA, Togar Sitanggang said in the official statement to InfoSAWIT.

Bangladesh did too by increasing the palm oil demands from Indonesia, reaching about  51% orfrom 91,69 thousandtonsin July to be 138,17 thousandtons. There were USA, India, and European that increased the demands reaching 29%, 21% and 14% for each.

For information, since August 2017, India effectively implemented more expensive CPO tax import to be 15% andrefined productabout 25% orincreased 7,5% and 15% for each from the previous time. The increasing tax import did not block the traders to buy CPO and the derivatives.

It happened for the limited stocks, and in the same time, the soybean production in Canada and Australia was not good enough because of the bad weather. This raised the concern, the vegetable oil stock would decrease globally and the price, for sure, would be more expensive if the global stocks were the concern,

On the other hand, Pakistan decrease the palm oil export from Indonesia, about 6%, orin July, the country imported 206,46 thousandtons,in August, it decreased the import reaching 194,38 thousandtons. The same thing happened in African countries and European Union countries, reaching 3% and 2,5% for each. (T2)