Indonesia set its export tax for CPO in January 2018 at 0% per ton, same with the previous month. Malaysia lower its export tax for CPO in January 2018 to 5.50% from 6.00% in December 2017.
A report from the United Nations is predicting India’s population will surpass China in the next four years. As well known, India is the largest consumer and importer of palm oil in the world.
Argentina has lower its soybean export tax to 29.5% from a previous 30%. The government is also cutting the export tax on soyoil and soymeal, down as of this month to 26.5% from a previous 27%.
Saudi Arabia’s strong commitment to the OPEC agreement to limit crude production. In November, Saudi Arabia produced 9.996 million b/d, down 45,400 b/d from October. Meanwhile, China will limit their export of crude oil not exceed 4 million barrels during any 12 month period, and export of refined oil products will cease when the total approaches a ceiling of 500,000 barrels.
Indonesia’s Biodiesel B20 Policy
Indonesian government, were running the B20 trials as the fuels for diesel engine train and other mining transportation – starts at early 2018 and targeted to finish around march to April 2018. The applications of B20 will increase the consumption of Indonesian CPO, with the diesel fuels contains of 20% fatty acid methyl ester (derived from palm oil).
3 Months duty-free export for Malaysia’s CPO
Malaysia Government will allow duty-free exports of CPO for 3 months starting 8th Jan to 7th April 2018, to clear stocks in the country. However, the CPO exports duty-free status would revert to being taxed within the 3 months period, if CPO stocks settles to or dips below 1.6 million tonnes.