Wed, 20 Apr 2011

TEMPO Interactive, Jakarta:The price of domestic soy bean might drop following the international market price’s decline. “The international price of soy bean has dropped 2.66 percent,” said Trade Minister Mari Elka Pangestu in Jakarta, last weekend.

The decline follows Argentina’s 48.8 million tons production increase in 2011. Meanwhile, Brazil’s soy bean production is expected to increase to 70.3 million tons. But the price of local soy bean has not followed the trend in the world’ market.

Based on the Trade Ministry’s evaluation, the soy bean coefficient variation stands at 1.8. If the coefficient is above 1, the local price will fluctuate more than the world’s price. This gives the impression that the price local soy bean is higher.

According to Mari Pangestu, there is a possibility that an import duty will be imposed on soy bean. “But in a few months, the price will drop,” she said. This is starting to show. The price of soy at the first week of April was Rp 8.910 per kilogram or 0.93 percent less than in March.