Jakarta, (Antaranews Kalsel) - Executive Director of the Indonesian Palm Oil Entrepreneurs Association (GAPKI) Mukti Sardjono stated that the purchasing power of palm oil by importing countries still shows weakness in September 2018, in addition to abundant production factors and the impact of poor CPO prices.
He said this condition caused the export of Indonesian palm oil, including biodiesel and oleochemicals, recorded to decline 3% or from 3.3 million tons in August 2018 to be eroded to 3.2 million tons in September.
"The low price of global CPO is not a strong magnetism for importing countries. The price of other vegetable oils is also cheap, especially soybeans, rapeseed, and sunflower seeds," he said in a GAPKI press release on Wednesday (11/07).
He explained, soybean prices themselves fell to the lowest level since 2007. The escalation of trade wars between China and the US has a considerable contribution in influencing soybean prices.
The palm oil market is not stretched even though prices are cheap, because one of Argentina's biggest soybean-producing countries has also taken action to reduce soybean export taxes to attract buyers, while increased palm oil production, especially in Indonesia and Malaysia worsens the situation so that stockpiles accumulate domestically.
COPYRIGHT © ANTARA News Kalimantan Selatan 2018
He said this condition caused the export of Indonesian palm oil, including biodiesel and oleochemicals, recorded to decline 3% or from 3.3 million tons in August 2018 to be eroded to 3.2 million tons in September.
"The low price of global CPO is not a strong magnetism for importing countries. The price of other vegetable oils is also cheap, especially soybeans, rapeseed, and sunflower seeds," he said in a GAPKI press release on Wednesday (11/07).
He explained, soybean prices themselves fell to the lowest level since 2007. The escalation of trade wars between China and the US has a considerable contribution in influencing soybean prices.
The palm oil market is not stretched even though prices are cheap, because one of Argentina's biggest soybean-producing countries has also taken action to reduce soybean export taxes to attract buyers, while increased palm oil production, especially in Indonesia and Malaysia worsens the situation so that stockpiles accumulate domestically.
Editor : Mahdani
COPYRIGHT © ANTARA News Kalimantan Selatan 2018