Volume of CPO Exports to India and Pakistan Down 5.6% in October 2017
By : Abraham Sihombing And Aldo Bella Putra | Tuesday, December 19 2017 - 22:00 IWST
INDUSTRY.co.id - Jakarta - Togar Sitanggang, Secretary General of GAPKI (Indonesian Palm Oil Entrepreneurs Association) said that the export volume of Indonesia's crude palm oil (CPO) to Pakisatan and India fell by 5.6% to 1.60 million tons in October 2017 compared to September 2017 of 1.69 million tons.
"The decline in CPO export volume is followed by a 16 percent increase in reserves to 3.38 million tons in October 2017. The condition is what makes CPO prices depressed at the end of this year," said Togar in Jakarta, Tuesday (19/12/2017).
Togar said, while the decline in CPO export volume to Pakistan and India was caused by soybean oil (soyaoil) export volume increase which is the closest competitor of CPO and the increase of import duty imposed by the Indian government.
"Nevertheless, the condition is only temporary because the longer supply of global soybean oil will also be reduced and the condition in the market will be taken over by the existence of CPO so that the price in the market will recover," added Togar.
The price decline was also experienced by Malaysian CPO where in trading Monday (18/12/2017) yesterday decreased by 1% due to profit taking action by market participants.
In addition, the decline in CPO prices was also caused by the downward trend in prices in recent weeks due to reduced demand and high supply.
According to Malaysian Palm Oil Board data, Malaysia's CPO production in November 2017 fell 3.3 percent to 1.94 million tons compared to October 2017 of 2 million tons. Generally, Malaysia's CPO production by the end of the year will continue to decrease until the second quarter of the following year. (Abraham Sihombing)