CPO export increases by 25 percent in first half

CPO - Exports of crude palm oil (CPO) and its derivative products increased by 25 percent to 16.6 million tons despite sober demand amid competition against a rapeseed and soybean oil global glut in the first six months, Indonesian Palm Oil Producers Association (GAPKI) data shows.

Palm oil production increased by 18.6 percent to 18.5 million tons in the first half, with stocks of 2.3 million tons as of June. This includes an adjusted figure of 1.5 million tons obtained from a field survey.

CPO price in the same period ranged between US$650 and $827.5 per ton, with a high start at $805.7 per ton in January, before softening due to slowing global demand amid other vegetable oil gluts.

“A global glut of rapeseed and soybean oil has made prices drop, consequently making palm oil — which is not a main vegetable oil source in Europe, America and China — less competitive, and its export slowed in June,” GAPKI executive director Fadhil Hasan said in a statement released on Wednesday along with the data.

Aggregately, in the first six months, CPO and derivatives export to main markets were all up except to Pakistan, where sales declined by 5 percent to 1.05 million tons due to competition with Malaysia. Export to the Middle East fell by 12 percent.

On the contrary, export to India and Europe increased by 43 percent and 42 percent to 3.8 million tons and 2.7 million tons, respectively.

Export to Africa, Bangladesh, the United States and China were up by 36.5 percent, 29 percent, 27 percent and 18 percent, respectively. (Stefani Ribka)