Price Indicator

CPOTR Focus:

• The ICDX CPOTR contract price 13/5 – 17/5 increased by 0.13%.
• The increase in soybean oil.
  

Market Review

CPOTR price movements increased within a week to IDR 11.265/Kg due to the market following the strengthening of soybean oil prices. When the price of soybean oil becomes more expensive, CPO becomes more attractive. Because these two commodities are indeed substitutes for each other.

Also supporting further increases, in the news circulating there was support for large purchases from India and China, thus strengthening market sentiment for CPO.

On the Supply side, at the previous meeting, based on MPOB data, Malaysian palm oil stocks at the end of April 2024 increased 1.85% from the previous month to 1.74 million tons, this increase was the first monthly increase in six months.  Then, crude palm oil production increased 7.86% from March 2024 to 1.50 million tons. Palm oil exports decreased 6.97% to 1.23 million tons.

Market View

Expectations of Increasing Needs for Biofuels

President Director of PT Pertamina Persero Nicke Widyawati said that currently Pertamina is encouraging the use of vegetable-based fuel for diesel fuel by mixing 35% of BBM with palm oil base fuel (B35). The blending of processed palm oil with fuel will continue to be developed up to B60 or a blend of 60% palm fuel in fuel. "One of our priority programs is biofuel. We are starting with B35 now and we will add blending up to B60. And from B25 we have actually reduced carbon emissions by around 32.7 million tons of CO2 per year." This raises hopes for palm oil consumption Furthermore.

WEEKLY ECONOMIC DATA & EVENTS CALENDAR

Source: ICDX Research