Palm Oil Boss Boss ‘Predicts’ CPO Prices Will Skyrocket in 2024 News – 1 hour ago

Nusa Dua, CNBC Indonesia – General Chairman of the Indonesian Palm Oil Entrepreneurs Association (Gapki) Edi Martono warned against an increase in the price of CPO (crude palm oil) next year.

This is caused by the decline in Indonesian palm oil production due to El Nino.

“The El Nino that we experienced this year will affect production for this year,” stressed Edi at the opening of IPOC 2023 in Nusa Dua, Bali, Thursday (2/10/2023).


This decline has been visible in production until the middle of this year. Palm oil production only reached 36.3 million tonnes as of August 2023. Of this volume, exports of palm oil, biodiesel and oleochemical production reached 23.4 million tonnes.

Apart from El Nino, Edi revealed that the progress of replanting oil palm has slowed down, especially on small farmers’ land.

Meanwhile, demand will continue to increase in line with the government’s commitment to implementing B35 and growth in public consumption, both in the food and industrial sectors.

“Indonesia’s palm oil stocks will undoubtedly be low,” said Edi.

As a result, this will increase the price of palm oil next year. This year, the price of palm oil fell drastically on the market.

According to Edi, this condition is influenced by weakening purchasing power due to economic weakness in several countries and an abundance of stock in producing countries.

As for Indonesia, Indonesian palm oil exports last August reached 2.07 million metric tons, down 55% compared to the same month last year, based on data from GAPKI.

Meanwhile, crude palm oil (CPO) production fell to 3.86 million tons in August, from 4.36 million tons in July. However, domestic stocks at the end of August increased slightly to 3.24 million tons.

[Gambas:Video CNBC]

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(dce)