Kontan Harian, 19 October 2018
Higher CPO demand from India, where domestic needs for CPO is rising ahead of a Hindu religious festival in November, and the Indonesian government’s mandatory 20% biodiesel blend (B20) policy are expected to cause an upward trend in CPO price.
Indonesian Palm Oil Producers Association (GAPKI) Trade Affairs Deputy Chair Togar Sitanggang on Thursday (18 October) said GAPKI estimated CPO price to range between $525-$540 a tonne for the next two months. GAPKI Communication Affairs Chair Tofan Mahdi said CPO price will be stable until year-end if India can absorb 600,000 tonnes of CPO. In addition, China is expected to raise CPO import for domestic usage.
Meanwhile, Indonesian Palm Oil Board (DMSI) Deputy Chair Sahat Sinaga said CPO price will go up if the B20 and B30 mandates go smoothly because it will decrease Indonesia’s CPO export.