InfoSAWIT, JAKARTA - Thomas Mielke of Oil World said that vegetable oil starts getting more expensive since October or in the early of November 2021. Crude palm oil (CPO) hit the most expensive price for few years.
“CPO from Indonesia hit premium price compared to soybean price from Argentina in the early of November 2021,” he said in webinar “Opportunities and Challenges for Palm Oil Producer Countries (OCOPOP)” that Council of Palm Oil Producer Countries (CPOPC) conducted and InfoSAWIT joined, Tuesday (23/11/2021).
Knowing that vegetable oil gets more expensive, consumers reacts globally. Mielke said, many consumers should resist their demand by reducing vegetable oil use. “It happens in every vegetable oil supply worldwide,” he said.
Smallholders are different. Knowing that vegetable oil gets more expensive, they massively develop plantations. It may happen that 9 million hectares of new planting. But new planting is not available in China and Argentina because soybean plantations get narrower in the two countries.
What about 2022 commodity price? According to Mielke, if the climate is normal, Oil World predicted, vegetable oil production in the globe will be abundant in 2021/2022. The stocks will be in good numbers.
“2022 commodity price could be cheaper. It starts from sunflower oil, then palm oil, and soybean oil,” he said.
He also mentioned, the expensive vegetable oil price will be temporary because of abundant production and good stocks. “We predict, palm oil and soybean oil will be cheaper in January/June 2022,” he said. (T2)