CPO price shoots to three-year high<\/p>\n
The Jakarta Post, Jakarta<\/p>\n
The price of crude palm oil (CPO) hit a three-year high of about
\nUS$415 per ton on Thursday due to rising demand, chairman of the
\nIndonesian Palm Oil Producers Association? (Gapki) Derom Bangun
\nsaid.<\/p>\n
He added that a reduction in supply of sunflower oil, a
\nsubstitute for CPO, had increased demand for the latter
\ncommodity.<\/p>\n
\"There has been a high demand in the market,\" he told The
\nJakarta Post.<\/p>\n
He estimated the price of CPO would continue to increase
\nfurther for the remainder of this month.<\/p>\n
Derom explained that the price of CPO had been on the rise
\nsince April when it stood at $350 per ton.<\/p>\n
Meanwhile, AFP quoted traders as saying that edible oil
\nproducers such as Brazil, Argentina, China, the U.S., Russia and
\nthe European Union were expected to have smaller crops this
\nseason, with a drop in the production of sunflower oil.<\/p>\n
Market players have also attributed the rising prices to
\nincreasing tension between India and Pakistan.<\/p>\n
\"The market is very excited now, and palm oil prices are
\nbreaking record highs,\" said a dealer at a Malaysian brokerage.<\/p>\n
\"The situation has been uphill for the past one week to two
\nweeks, and will probably remain on its upward trend.\"<\/p>\n
The rising CPO price in the international market could push
\nlocal producers to cater for the overseas market, which, in turn,
\ncould cause a shortage at home and push up the price of cooking
\noil.<\/p>\n
Derom said that the tension between India and Pakistan had
\nnothing to do with the rising demand for CPO.<\/p>\n
He added, however, that if there was an expectation that the
\ntension would continue for much longer, the two countries might
\nbe forced to boost their stocks through increased purchases on
\nthe open market.<\/p>\n
Indonesia is the world's second-largest palm oil producer
\nafter Malaysia, with a targeted output of 9 million tons of palm
\noil this year, up from 8.3 million tons last year.<\/p>\n
The anticipated increase is the result of the harvest from
\ntrees planted between 1996 and 1998.<\/p>\n
Meanwhile, total exports are also expected to rise to 5.5
\nmillion tons this year, from 4.9 million tons in 2001. Indonesia
\nis hoping to export some 1.6 million tons of CPO to India this
\nyear, up from 1.5 million tons last year, while exports to
\nPakistan will be relatively much lower, at about several hundred
\ntons.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/cpo-price-shoots-to-three-year-high-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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