Crude palm oil (CPO) export price keeps increasing, reaching US$1,100 per ton for November 2010 shipment.
"We estimate CPO price will stay expensive until the yearend or even early 2011," said Treasurer of the North Sumatra Indonesian Oil Palm Companies Association (Gapki) Laksamana Adiyaksa, yesterday. He attributed the high price to strong demand.
"However, the overpriced CPO has often stalled trade transactions since both sellers and buyers choose to wait and see."
The strong export price also impacts CPO price in the local market. On November 5, 2010, CPO tender price jumped to IDR9,217 per kg from the previous IDR9,060 per kg.
"We hope the farmers can also enjoy the good price if CPO price keeps increasing," he told Antara.
Foreign exchange revenues from vegetable and animal oil and fat during January-September 2010 increased 30.78% to US$2.552 billion from January-September 2009, but the revenues in September 2010 fell 38.12% to US$333.353 million from August.
Indonesia's CPO production represents 47% of the global production, making the country the largest CPO-producing country in the world.
Data by international independent firm Oil World received yesterday show the second largest CPO-producing country is Malaysia, with production reaching 39% of global CPO production.
Other countries producing a large quantity of CPO are Nigeria, Thailand, Colombia, Ecuador, New Papua Guinea, Ivory Coast, and Brazil.
Data by Oil World add around 75% of the total CPO production is exported. In 2010, the global CPO production is estimated at 46 million tons, with the total size of area used reaching 12 million hectares, the majority of which are located in Indonesia and Malaysia.
Oil World also exposes CPO has become the most important vegetable oil in the world. Among vegetable oil, CPO is ranked first (30%), followed by soybean (29%), rapeseed (14%), sunflower (8%), and other vegetable oil products (19%).
Disclosure: No position at the stock mentioned above.
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