Palm Oil Exports Reach 26.73 Million Tons

The General Secretary of the Indonesian Palm Oil Producers Association (Gapki) Togar Sitanggang said that in October the total volume of Indonesian crude palm oil exports (excluding biodiesel and oleochemicals) could only reach 2.60 million tonnes or down by 5.60% compared to the previous month. But for all palm oil sector, national exports during January-October 2017 reached 26.73 million tons. Whereas, in 2016, the total realization of crude palm oil exports was only 26.57 million tons, he said in Jakarta yesterday.

Throughout October 2017, the Indian and Pakistani palm oil market was weak, resulting in a decrease in Indonesian crude palm oil exports to the two countries and also led to a decrease in total Indonesian crude palm oil exports. Meanwhile, Indonesia's crude palm oil stocks until the end of October were recorded to have increased 16% from the previous month, or from 2.92 million tons in September to 3.38 million tons in October 2017.

The increasing domestic crude palm oil due to increased production and decreased export performance. In October, the production of CPO and palm kernel oil ( PKO ) increased by 3% from last September, or from 4.03 million tons to 4.16 million tons. In October 2017, several of Indonesia's main export destinations recorded an increase in demand for crude palm oil from Indonesia, such as China which recorded an increase of 14% or from 370,470 thousand tons in September to 423,740 thousand tons, followed by the European Union which increased by 18%, United States increased by 11%, and Bangladesh increased by 22%.

Meanwhile, Pakistan recorded a significant decline in demand for crude palm oil from Indonesia, of 32%, or from 211,520 thousand tons in September to 144,260 thousand tons in October. The decrease is due to the active use ofcrushing plant in the country which triggered high imports of soybeans and canola, also because the price is a strong factor for Pakistan in determining the volume of crude palm oil purchases. India also follows Pakistan by recording a 16% decrease in demand, or from 650,750 thousand tons in September to 544,170 thousand tons in October.

The decline in demand from India due to high prices and high Indian import duties. India is also actively filling up soybean stocks in its country.

In terms of price, throughout October 2017, global crude palm oil prices moved in the range of US $ 700-735 per metric ton (mt) with the average price of US $ 719.40 per mt. This average price has decreased slightly compared to the average price of September which was US $ 724.90 per mt. In the biodiesel sector, the absorption of biodiesel in the country

in October decreased by 4% or `from 225 thousand tons in September down to 216 thousand tons in October. The absorption of biodiesel in the country is still consistent every month although there are fluctuations.


Source: Investor Daily

---------------------------



Import Duties Cut CPO Exports