Bisnis Indonesia, 14 December 2018
According to Bloomberg’s data, the benchmark crude palm oil contract for February 2019 delivery rose 2.08% to 2,057 ringgit on Thursday (December 13) due to reports from the White House that China has begun to import 2.5 million metric tons of soybeans from the US on Tuesday (December 11).
Indonesian Biofuel Producers Association (Aprobi) Chair Master P. Tumanggor on Thursday (December 13) explained that China’s decision to buy soybeans from the US would indirectly raise global crude palm oil (CPO) price. However, he also reminded national palm oil industry to be wary about China’s demand for CPO-based biodiesel from Indonesia, because China might reduce CPO consumption and use soybean oil again. Thus, Aprobi is considering Russia, Africa, and the Middle East as new export markets.
Meanwhile, Indonesian Palm Oil Association (GAPKI) Trade Deputy Chair Togar Sitanggang was confident that CPO exports to China will be stable despite the trade war cooldown. He said that if China reduces imports of CPO and its derivatives, Indonesia can export palm kernel cake to the country to feed ruminants and poultry, considering that China has begun to ban rapeseed meal imports from India.