The Reasons to the Increasing CPO Demands

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The Reasons to the Increasing CPO Demands

InfoSAWIT, KUALA LUMPUR – In the late days, crude palm oil (CPO) producer countries, Indonesia and Malaysia got increasing CPO exports from the escalating exports (palm olein), particularly from Middle East and other countries within many moslem populations to fulfill their needs in Ramadan days, as Sathia Varqa, one founder of Palm Oil Analytics in Singapore, said.

He thought, the countries, such as, Egypt, Iran, Saudi Arabia that generally depend on sunflower oil should substitute to get palm oil to fulfill higher seasonal deamdns.

As quoted from The Edge Markets, sunflower oil supply in the globe gets decreasing starting in the first days of Russian invasion to Ukraine. This damaged port infrastructures and other vegetable oil supply from the Black Sea. The (candidate) of buyers should get other alternative vegetable oil.

It led CPO price got more expensive and hit the highest record for the past several months. It has to get limit of demands in some importer countries because they are to sensitive about CPO price.

“In April, sustainable palm oil producrion could be increasing for the weather is good and would maintain the price under presser. But crude oil price would also maintain CPO price remain in control,” Varga said. (T2)