24
Mar
Palm Oil Boss Relieved, CPO Prices Rise Again After Successive Falls
Jakarta, CNBC Indonesia - The price of crude palm oil (Crude Palm Oil / CPO) recovered today, Wednesday (16/3/2022), from its decline for two consecutive days. In fact, CPO prices are predicted to rise to the range of MYR 6,548-6,686/ton.
Referring to Refinitiv data, at 08:30 WIB, CPO prices are priced at MYR 6,250/ton or up 1.92%.
Wang Tao, Commodity Analyst at Reuters, estimates that today's CPO price will bounce to the range of MYR 6,548-6,686/ton, where the support point is at MYR 6,104/ton, a break below it will cause a decline to the range of MYR 5,744-5,855/ton.
Cargo dealer Societe Generale de Surveillance said that Malaysia's CPO exports for the March 1-15 period jumped 13.2% to 574,893 tons from 507,673 tons.
Meanwhile, imports of sunflower seed oil, mostly from Ukraine, rose to 1.43 million tons from 1.3 million tons in the previous year. Data on imports of European soybean and rapeseed oil fell. European soybean oil imports fell from 12.34 million tons last year to 11.59 million tons and rapeseed oil imports decreased by 3.67 million tons from 4.84 million tons in 2021. CPO oil imports in Europe also fell, from 3.95 million tons to 3.52 million tons this year.
Launching Reuters, the Indonesian government will remove the retail price limit for packaged cooking oil and will subsidize sales, in an effort to ensure supply in the retail market after the previous policy with price controls resulted in a shortage.
The world price of CPO, which Indonesians use for cooking oil, has soared to historically high levels this year amid rising demand and weak CPO production from Indonesia and Malaysia. In addition, the war in Ukraine has suppressed the supply of other vegetable oils and pushed CPO prices up.
Indonesian Economy Minister Airlangga Hartanto said that the government would increase the price of bulk cooking oil to Rp 14,000/liter from the previous Rp 11,500/liter and provide subsidies.
This latest policy will effectively remove the price limit for premium packaged cooking oil and second layer quality oil, after being set at Rp 14,000/liter for premium and Rp 13,500/liter for second layer.
The state agency that will be tasked with funding is the Palm Oil Plantation Fund Management Agency (BPDPKS), but is still waiting for the government's calculation of the amount of the subsidy.
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