Malaysian CPO Price is Still Depressed India's Import Tax Policy

By : Abraham Sihombing And Aldo Bella Putra | Tuesday, August 15 2017 - 19:03 IWST

5166
5166

INDUSTRY.co.id - Jakarta - Malaysian crude palm oil (CPO) prices fell in early trading on Tuesday (15/08/2017) morning following a decline in prices in the previous trading session.

"The price decline is due to the negative sentiment that comes along with India's plan to raise the import tax of CPO and other vegetable oil," said Agus Chandra, an analyst of PT Monex Investindo's commodity products in Jakarta, Tuesday (15/08/2017).

According to the plan, the Indian government, the world's largest vegetable oil consumer, raised its CPO import tax to 15% on Friday last week. However, the move was followed by a 25% increase in CPO import tax returns. It aims to protect local CPO farmers against the arrival of cheaper imported goods from Malaysia and Indonesia.

"Despite this, the decline in crude oil prices helped boost negative sentiment towards CPO prices. Crude oil prices tumbled along with the strengthening of the US dollar exchange rate and the decline in Chinese domestic demand," Agus said.

Furthermore, Agus said that the decrease of CPO is also caused by other negative sentiment arising from the release of data conducted Interrtek Testing Service reporting Malaysian CPO export decline of 14.6% during 1-15 August 2017.

"During this period, the volume of Malaysian CPO exports fell to 512,039 tons compared to the same period in the previous month of 599,414 tons," Agus added.

Agus explained that CPO price technically will drop to the nearest support point at the level of 2620 ringgit per ton before finally drooping at 2,570 ringgit per ton. "However, if the price creeps up and is able to break the 2,700 ringgit per tonne level, then the CPO price will continue to move to 2,740 ringgit per ton," Agus said. (Abraham Sihombing)

News Comment

Today's Industry

Bank Indonesia

Minggu, 22 Juli 2018 - 00:30 WIB

BI denies rate of reference weaken Rupiah

Jakarta - Bank Indonesia rejected that the 7-Day Reverse Repo Rate (MFI) rate of 5.25 percent on Thursday was one of the causes of the weakening of the rupiah on Friday (20/7/2018)

Fuad Amin (Foto dok industry.co.id)

Minggu, 22 Juli 2018 - 00:00 WIB

KPK Expects Several Rooms in Sukamiskin Prison

Bandung - The Corruption Eradication Commission (KPK) ransacked a room that allegedly served as the Chief of Correctional Institution (Kalapas) Sukamiskin Wahid Husen on Saturday morning (21/7/2018)

Pgn (Istimewa)

Sabtu, 21 Juli 2018 - 23:30 WIB

PGN Starts Flowing Industrial Gas Shoelaces in Pasuruan

Surabaya - PT Perusahaan Gas Negara (PGN) began to deliver gas to the shoelace industry in Pasuruan regency, East Java, to PT Rajawali Cakra Sakti with a total contract volume of 10,000-15,000…

Blok Migas (Foto Eksplorasi.ID)

Sabtu, 21 Juli 2018 - 23:00 WIB

Bojonegoro Oil Service Rewards World Oil

Bojonegoro - PT Pertamina EP Asset 4 Field Cepu, Central Java, provides compensation for services to traditional oil miners including to PT Bojonegoro Bangun Sarana (BBS) which manages oil wells…

Kebun Kelapa Sawit (Ist)

Sabtu, 21 Juli 2018 - 22:30 WIB

GAPKI Lobby Pertamina To Absorb Palm Oil

Surabaya - The Indonesian Palm Oil Entrepreneurs Association (Gapki) is trying to lobby PT Pertamina through the government to absorb the palm oil harvest which is quite high in 2018, but is…