Price Performance Indicators

Market Review

CPOTR Focus:

• In a week (21/2 – 25/2) ICDX CPO Prices rose 12.2%.
• Russia invasion became the main focused to global vegetables oil.

The ICDX CPOTR rose to 12.2% on the past week, as several headline globally and domestically drove the CPO prices to around 23.000 IDR per kg. From domestic, the Domestic Market Obligation (DMO) still became the main focused, as it slowed down down supply to global markets. With the policy, Indonesia exporter must supply local market around 20% before they may exported the other 80%.

From global sentiment, conflict in Eastern Europe, happened last Thursday, with Russia strike Ukraine through land, air, and water. The conflict causing an unbalance on global commodity such as energy and metals, including the vegetable oils and pushed up those commodities higher since last week.

The Ukraine Black Sea, which became the main area of sunflower seed oil exporter, were affected by the invasion. With the conditions, buyer and other user in around Ukraine, were forced to used CPO – substitution of sunflower seed oil, which supplied were hampered by the conflict in Ukraine area. Both sentiment, the DMO and the conflict between Ukraine and Russia, were together affected the supply side by lowering the products to globally, while the demand side were higher as sunflower oil seeds production were not enough to fulfill market needs.

Market View

CPO Prices in Weeks Ahead

CPO prices were moving higher to the end of the week, as most sentiments drove up CPO prices. Meanwhile, high CPO prices may be causing hurdle to users, who may be unable to afford using the CPO product. These may cause people that were affected by higher prices move to other vegetable oil that more affordable than CPO. Will the CPO prices kept soaring in weeks ahead by demand condition in several area around the world?

WEEKLY ECONOMIC DATA & EVENTS CALENDAR

Source: ICDX Research