CPO Price Heats up
Based on data from Bursa Malaysia, the price of CPO for the May 2022 contract was at the level of 4,705 ringgit per ton, up 130 points from the previous day at the close of trading
LMC International estimates that CPO prices will remain above the level of 4,700 ringgit per tonne or around US$1,124 per tonne. LMC International Regional Head Julian Conway McGill said CPO producers need at least 12 more months to return to their highest production levels in 2019. “The weak production from Malaysia is not surprising, but the decline in production from Indonesia after recording a good performance in the first half of 2021, came as a surprise,” he said as quoted by Bloomberg, Monday (17/1). He estimates Malaysia's production to rise 2.6 percent this year to 18.6 million tons and Indonesia's production to rise 5 percent to around 47 million tons. Meanwhile, one of the sentiments that is expected to characterize the limited supply of CPO in Malaysia and Indonesia is the weather. The price of CPO next year will also be driven by the sentiment of a shortage of plantation workers in Malaysia. The Palm Oil Plantation Fund Management Agency (BPDPKS) stated that the government will try to meet the biodiesel consumption target of 9.4 million kiloliters this year, because funds from export levies are channeled to biodiesel subsidies. The Indonesian Palm Oil Association (Gapki) estimates that CPO oil prices are expected to remain above US$1,000 per ton in 2022. Stable prices are high driven by rising demand, while production is forecasted to grow lower.
|•SOURCE•| Articles :BISNIS | Image :GAPKI |
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