InfoSAWIT, JAKARTA – According to Indonesian Palm Oil Association (IPOA) the crude palm oil (CPO) CIF Rotterdam in August was US$ 541 per metric ton in average. It was the highest since March 2019.

But it was still decreasing trend since January 2017. It took for some time and a concern for the producers. The trade war between United States of America (USA) and China makes the soybean supply increase. The producers and the government of USA keep searching the substitution of China while palm oil for its annual plantation within the natural characteristic, could not hold on the production and should be sold to the market.

“The breakthrough that USA would do to reduce the soybean supply, the success of China to handle the African swine flu and the increasing swine meat, and also the implementation of Biodiesel program (B20) and B30 in Indonesia would determine the balance of vegetable oil and in the end it would determine the change of CPO price in the future,” Executive Director of IPOA, Mukti Sardjono said in the official statement to InfoSAWIT, Tuesday (17/9/2019).

Apart from the prediction of CPO price, the old day – experiences urged Indonesia to increase the productivity, do efficient production so that the production would be competitive. Indonesia needs to formulate the mechanism that could manage the supply to the world to determine the price. (T2)