The palm oil sector is taking a cautious stance toward its export outlook as a turbulent global economy and negative sentiment toward the commodity have taken a toll on palm oil prices. 

Statistics Indonesia (BPS) said early this week that the drop in global palm oil prices contributed to the country's historic US$2.5 billion trade deficit in April, which was the largest monthly deficit since 2013. 

The BPS noted that while crude palm oil (CPO) exports had increased in volume, they lost a lot of value because of price volatility. Its data shows that the country's CPO export value decreased 27.86 percent month-on-month to US$919 million from $1.27 billion in March.

“The export value [of CPO] to a few countries improved, such as to China, but the value decreased in other countries like India, Pakistan, Bangladesh and Egypt. It decreased even further [in shipments] to Russia and Spain,” BPS head Suhariyanto told a press briefing. 

Russia and Spain, Suhariyanto noted, are European countries that have been strongly influenced by the European Union's negative campaigning against palm oil, even though Russia is not a member of the EU. 

According Indonesian Palm Oil Producers Association (Gapki) data, CPO prices averaged US$530 per metric ton in April, a slight increase from the $528.40 per metric ton in March and were much lower than the February average of $556.60 per metric ton. 

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