CPO price rises

MEDAN: The export price of crude palm oil or crude palm oil (CPO) is estimated to remain high at over 1,000 U.S. dollars per metric ton because of production remains low until February amid strong demand.
"The production of FFB and CPO followed from January to February is lower than the November-December, while although not very strong due to the impact of the crisis, rising demand and encouraging survival rates," said Vice Chairman I Indonesian Palm Oil Board (DMSI) Derom Bangun, in Medan, Tuesday, January 31, 2012.
Predicted prices rose more believed because of soybean production in Brazil and Argentina fell due to a drought in South America.
CPO export prices for shipment in February, March and April of 1057.50 U.S. dollars per metric ton, and prices in the local Rp8.360 per kg.
Prices could rise again to reach U.S. $ 1,200 per metric ton if Europe can solve its debt crisis which means it can restore the country's financial and other nations.
Europe itself is still one of the countries of the world's largest CPO export destination, after India and China, said Derom.
"Exporters are expected to take advantage of the strengthening of national price and demand, especially India and China imported palm oil this year also mentioned increased from 2011," he said.
India in demand this year is estimated as many as 7.1 million tons, up from 2011 which amounted to 6.750 million tonnes.
While China's imports of palm oil in 2012 amounting to 6.650 million tonnes from 5.950 million tons in 2011 and followed by the European Union from 5.1 million tons in 2011 to 5.6 million tons in 2012.
"The three countries are still the world's largest market CPO in particular Indonesia, although some employers have also begun to expand its market share to other countries such as the Middle East," he said.
Indonesia's CPO production alone in 2012 amounting to 25.9 million tons, up from 2011 which was 24.1 million tons.
Although prices rose, but the average price of CPO in 2012 estimated U.S. $ 1050 per ton or slightly below the 2011 prices in the range of 1100 U.S. dollars per ton.
Chairman of the Indonesian Palm Oil Growers Association (Apaksindo) Anizar Simanjuntak admitted selling price of fresh fruit bunches or FFB still hold good until the end of January.
"Apkasindo hope, the government could help increase the export volume and price of CPO is automatically raise the purchase price TBS farmers," he said.
He emphasized that today, produski TBS in the low country dry ingredients.
In addition to encouraging increased export volumes and prices, the government is expected to immediately revise the Regulation of the Minister of Agriculture No. 17 of 2010 on Guidelines for Determination of Purchase Price FFB Production of Oil Palm Planters.
According to him, until now TBS farmers with different types of quality remains subject to price cuts of up to five percent, while the farmer had not received an incentive of four per cent if the quality is good as set out in the Regulation of Number 17 in 2010's.(Ant/Eksp)