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Economy in brief: Palm oil exports drops3%
Indonesia’s palm oil exports declined by 3 percent in September to 3
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span>Indonesia’s palm oil exports declined by 3 percent in September to 3.2 million tons from 3.3 million tons in the previous month, the Indonesian Palm Oil Producers Association (Gapki) has said.
“The decreasing price of crude palm oil [CPO] has failed to attract countries to export more CPO because the prices of other vegetable oils like soybean, rapeseed and sun flower oil have also decreased,” Gapki announced in a press statement issued on Wednesday.
The price of soybeans had also dropped to its lowest price since 2007, the association said, adding that Brazil, the largest producer of soybeans, had cut its export tax on the commodity, further pushing down the prices of vegetable oil, including CPO.
According to Gapki, the situation had sparked an increase of CPO stocks in Indonesia and Malaysia, the first and second largest CPO producing countries, respectively.
Throughout September, the export value of CPO and its derivative products, including oleochemical and biodiesel, remained stagnant at 2.99 million tons, compared to the export figure in August.
Meanwhile, the export value from January to September was recorded at 22.95 million tons, 1 percent lower than the export value in the corresponding period in 2017, which was at 23.19 million tons.
Gapki said India was the largest importing country of Indonesian CPO and its derivative products in September with a total export volume of 779,440 tons, 5 percent lower than its CPO imports in the previous month of 823,340 tons.
