Price Performance Indicator
Focus on CPOTR The
CPOTR prices fell 9.18% to the level of Rp. 18440/ Kg at the close of trading last week. Prices for CPO decreased for a full week in the third week of June, triggered by the sentiment that more Indonesian CPO exporters were getting export approvals, in addition, the Indonesian government issued an export acceleration policy that took effect on June 13, 2022 yesterday. This makes the supply of CPO from Indonesia to the global market is increasing.
On the other hand, China as the second largest CPO importer in the world has again implemented restrictions in several cities, this has caused a potential decline in demand for CPO. India, which is the largest importer of palm oil in the world, also reduced its CPO imports and switched to vegetable oil, with a significant decline in demand making CPO prices weighed down in the third week of June.
However, the decline in CPO prices was limited by sentiment from the Malaysian CPO market which was still constrained by the plantation workforce crisis, the Malaysian Ministry of Human Resources noted (13/6), currently Malaysia still lacks 15,000 workers.
Trend CPO is still in a state of decline due to influenced by the decline in demand from the main importing countries that has occurred since the past week, as seen from India as the world's first largest CPO importer which has reduced the number of CPO imports, as well as the shift in purchasing from CPO to vegetable oil. In addition, the threat of the re-spreading of the COVID-19 outbreak in China also weighed on the demand for CPO. This is because China is the world 's second largest CPO importer. However, the bullish trend in the vegetable oil market due to the Ukraine conflict and the fertilizer crisis has the potential to boost CPO prices.
MY - Balance of Trade MAY
MY - Exports YoY MAY
MY - Import YoY MAY
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