InfoSAWIT, JAKARTA – Oil World mentioned that vegetable oil price will be expensive. In October or in the early of November 2021 crude palm oil (CPO) once hit the most expensive price in the last five years.
“CPO from Indonesia hit premium price (much more expensive) compared to soybean from Argentina in the early of November 2021,” Mielke of Oil World said at the 17th Indonesian Palm Oil Conference and 2022 Price Outlook, that InfoSAWIT attended, Thursday (2/12/2021).
Consumers in the globe directly responded it. Mieke thought, the consumers gas to postpone vegetable oil demands by limiting the use. “It happens in every vegetable oil supply in the world,” he explained.
Meanwhile, smallholders’ groups are different. Knowing that vegetable oil gets more expensive, they develop plantations as wide as they can. It is said that there have been 9 million hectares of new plantings. But the new plantings are not in China and Argentina because the two countries have decreasing soybean plantations.
Mielke also thought, with the assumption that climate is normal, vegetable oil production will be enough in 2021 / 2022. The stocks will be normal again.
It means that the commodity price in 2022 will be getting cheaper, it starts from soybean oil, then, palm oil, and then soybean oil.
He also mentioned, the expensive vegetable oil price will not last for long because of the abundant production and available stocks. “We predicted, palm oil and soybean oil price will be cheaper in January/June 2022,” Mielke said. (T2)