InfoSAWIT, SINGAPORE – Crude palm oil (CPO) price got cheaper for the third day in a row, Tuesday (26/7/2022) because the markets carefully responded what the Government of Indonesia is trying to boost CPO exports.
CPO contract for October 2022 delivery was in fluctuation before it ended up 1,6% cheaper to be RM 3,646 (US$ 819) per ton – the cheapest numbers in the past one week.
Indonesia keeps trying to escalate CPO exports to minimize domestic abundant stocks. The facts showed, CPO stock decreased 50% of the record in April 2022. The Government of Indonesia temporarily eliminated export levy by the late of August and considered to do the same with domestic market obligation and domestic price obligation to accelerate the exports.
As quoted from The edge Markets, the traders saw a potential agreement to enliven agricultural product exports from Ukraine, one biggest wheat, corn, and vegetable oil producer in the world. But there is no certainty how fast the export would take place because the war still happens in the country with Russia.
Prior Russia attacked Odesa harbor by a missile last week, only few hours after the agreement signing to open the seed export blockade from Ukraine.
CPO could be cheaper in the third quarter of this year while waiting for what Indonesia would regulate. It could be about RM 4.800 and RM 5.200 per ton, as Minister of Commodity Malaysia, Datuk Zuraida Kamaruddin said, Monday (25/7/2022).
Datuk Zuraida thought, by the CPO export levy in Indonesia that would be in September 2022 and the decreasing production in the fourth quarter, it could be increasing to be RM 5.000 and become RM 5.500 per ton in the past three months. (T2)