25 Nov 2016

2017, Palm Oil Commodity Predicted to Still Fluctuate

2017, Palm Oil Commodity Predicted to Still Fluctuate. `The economic growth prospect for next year will at best be no better than this year, or even worse. This will affect the demand for and price of commodities, including palm oil,` said Iwan at the 12th Indonesian Palm Oil Conference (IPOC) 2016 at the Bali International Convention Center (BICC) Nusa Dua, Bali, on Thursday (24/11).

Iwan said, global economic growth next year is projected to be around only 3 percent or even below. Meanwhile, global economic growth this year is predicted to only reach around 3 percent or slightly above.

The sluggish global economic growth will definitely cause a number of countries that usually import crude palm oil (CPO) to reduce demand.

Automatically, low demand will cause CPO prices to fail to return to their glory days, which once reached US$750 per ton. However, Iwan refrained from predicting the CPO price range next year.

These three factors, said Iwan, are actually very compelling. This is because, Iwan noted, the CPO trade value has made a major contribution to global economic growth from the other side.

However, Iwan sees that there is still another potential, which, although not large, has an upward trend, namely the biofuel and biodiesel commodities.

`The opportunities are biofuel and biodiesel. But it depends on the target developed countries, because they want to abandon fossil fuels and substitute them with biofuel and biodiesel,` said Iwan.

Furthermore, said Iwan, this potential is still quite strong in the Indonesia-US trade relationship.

Unaffected by Donald Trump

Iwan said, the Indonesia-US biofuel and biodiesel trade has good potential in 2017. This is because the US is one of the countries that has a major interest in substituting fossil fuel use with more environmentally friendly ones.

He also dismissed the negative sentiment on the Indonesia-US trade, even though Donald Trump, the winner of the 45th US Presidential Election, prioritizes the import of fossil fuels.

`The private sector will drive the export of biofuel and biodiesel. Trump could change (from prioritizing the use of fossil fuels) because of pressure from the government to reduce US dependence on fossil fuels. It is inevitable, with Trump or without Trump, that biofuel and biodiesel will be prioritized,` explained Iwan. (gir)
https://cnnindonesia.com/ekonomi/20161125012721-85-175124/2017-komoditas-sawit-diprediksi-masih-kembang-kempis/

"The economic growth prospect for next year will at best be no better than this year, or even worse. This will affect the demand for and price of commodities, including palm oil," said Iwan at the 12th Indonesian Palm Oil Conference (IPOC) 2016 at the Bali International Convention Center (BICC) Nusa Dua, Bali, on Thursday (24/11).

The sluggish global economic growth will definitely cause a number of countries that usually import crude palm oil (CPO) to reduce demand.

Automatically, low demand will cause CPO prices to fail to return to their glory days, which once reached US$750 per ton. However, Iwan refrained from predicting the CPO price range next year.

These three factors, said Iwan, are actually very compelling. This is because, Iwan noted, the CPO trade value has made a major contribution to global economic growth from the other side.

However, Iwan sees that there is still another potential, which, although not large, has an upward trend, namely the biofuel and biodiesel commodities.

"The opportunities are biofuel and biodiesel. But it depends on the target developed countries, because they want to abandon fossil fuels and substitute them with biofuel and biodiesel," said Iwan.

Furthermore, said Iwan, this potential is still quite strong in the Indonesia-US trade relationship.

Unaffected by Donald Trump

He also dismissed the negative sentiment on the Indonesia-US trade, even though Donald Trump, the winner of the 45th US Presidential Election, prioritizes the import of fossil fuels.

"The private sector will drive the export of biofuel and biodiesel. Trump could change (from prioritizing the use of fossil fuels) because of pressure from the government to reduce US dependence on fossil fuels. It is inevitable, with Trump or without Trump, that biofuel and biodiesel will be prioritized," explained Iwan. (gir)

https://cnnindonesia.com/ekonomi/20161125012721-85-175124/2017-komoditas-sawit-diprediksi-masih-kembang-kempis/

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