Palm Oil Towards a New Balance
Data from the Central Statistics Agency (BPS) shows that exports of vegetable oils and fats with the HS code 15 fell 30.89% from US$2.74 billion in May 2021 to US$1.89 billion in June 2021.
The decline in export value was followed by a decrease in volume of 31.52%, from 2.61 million tons to 1.78 million tons. The Deputy Minister of Trade for the period of 2011–2014 as well as an agricultural economist from IPB University, Bayu Krisnamurthi, said that this decline was to be expected. The decline in imports is inseparable from the high price of palm oil which also influences importers' purchasing decisions. If you refer to World Bank data, the average price of crude palm oil (CPO) is still stuck above US$1,000 per tonne, namely US$1,156 per tonne in May and US$1,017 per tonne in June. “Besides, soybean production is starting to increase and oil prices are still holding up. With a relatively good projection of palm oil production, these factors are like the process of normalizing the world palm product market,” said Bayu, Bayu estimates that the decline in exports will be sloping with relatively constant demand going forward. The new balance was formed because importers who had switched to palm oil due to the increase in soybean prices began to buy soybeans again in line with the normalization of production and prices. Chairman of the Indonesian Palm Oil Association (Gapki) Joko Supriyono said that demand from China is also solid and continues to strengthen. For example, exports in May rose 71% year-on-year. "We hope that with PPKM, production will be without obstacles. Exports should also remain smooth, only a few countries with an increase in cases may be disrupted," said Joko.
|•SOURCE•| Articles :BISNIS | Image :CNBC |
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