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Jakarta Post

Analysis: Recovery of CPO demand

  • Andrian Bagus Santoso

    The Jakarta Post

PREMIUM
Jakarta   /   Tue, September 15, 2020   /  09:14 pm
The Jakarta Post Image
Workers harvest oil palm fruit at PT Kimia Tirta Utama’s oil palm plantation in Siak regency, Riau, in this photo file. (Antara/FB Anggoro)

The COVID-19 pandemic has hit global demand for most products, including crude palm oil (CPO). The United States Department of Agriculture (USDA) in its oilseed report predicts that global consumption of CPO will decline by 2.3 percent year-on-year (yoy) in the September 2019 to October 2020 period. The USDA also predicts that CPO consumption will recover in the next period by 4.2 percent yoy. In a more detailed view, CPO demand actually began to normalize since June 2020. One of the indicators that show improved demand is export volume from major producing countries, such as Indonesia and Malaysia. Indonesia's CPO export volume in June and July 2020 were 2.1 and 2.4 million tons respectively, the same volume as Indonesia’s CPO exports in June and July 2019. Similarly, Malaysia’s CPO export volume in June and July were recorded at 1.7 and 1.8 million tons, respectiv...