CPO prices down, Buyer Hold Order

medan:Purchaser (buyer) is still holding foreign purchase order crude palm oil (CPO) from Indonesia although the price continued to decline. Currently, crude palm oil price was U.S. $ 1,030 per metric ton, down from U.S. $ 1,156 - U.S. $ 1,177 per metric ton.Still deteriorating financial conditions in the countries of Europe and the United States, the trigger falling CPO prices. "Economic growth in Europe is still worse to be triggered. Because of extensive trade networks.
Moreover, European countries into the purpose of various derivative products, "said Secretary of the Association of Palm Oil (Gapki) Timbas Prasad Ginting Sumatra on Wednesday (18/7). Currently, the price of CPO exports to the local price of about Rp 9.758/kg .
CPO price decline does not necessarily make the high demand. Noted, some countries still hold order CPO buyers, especially China, India, Malaysia, Singapore and Russia, which is the fifth largest buyer of CPO Sumatra.
According to him, with a lot of production in the country and demand decreases, the CPO price could come back down, moreover there are no signs of economic recovery of Europe.
"If China and India alone hold the purchase for one month, would impact on the price drop and that's when they will buy CPO," he said. Indeed, he added, could be a decreased demand because the supply in these countries still exist.
In addition to China and India, he said, CPO market also been developed to Pakistan, Eastern Europe and Africa. He said the market is expanded. But on the other hand, entrepreneurs need the government's policy on customs exit (BK) that these funds should be returned to the region to assist the development of plant productivity and downstream industries in the country.
Based on the Certificate of Origin (SKA) Department of Industry and Trade (Disperindag) of North Sumatra, the export value of palm oil until the first half of 2012 reached U.S. $ 1.525 billion, down by 13.4% over the same period last year amounted to U.S. $ 1.761 billion. Volume also decreased from 1,828,768 tons to 1,790,115 tons.
"The delivery of these objectives CPO China, India, Netherlands, Malaysia, Haiti, Russia," said Head of Export Agriculture and Mining Subdin Foreign Trade Disperindag Fitra Kurnia Sumatra.
Sekjend Indonesian Palm Oil Growers Association (Apkasindo) Arsyad Asmar, said the price of fresh fruit bunches (FFB) is also down. To position TBS price at the farm today, he added, ranging from Rp 1.000/kg, whereas before, almost to Rp 1.500/kg. Meanwhile, at the factory level above Rp 1.800/kg. "Price fluctuations are not independent of the market mechanism, in which the CPO prices also fell," he said.
Nationally, Apkasindo CPO production target of about 25 million tons. Meanwhile in North Sumatra has increased 5% compared to last year to reach about 3.2 million tonnes.
This increase is supported by the use of superior clones and treatment plants, so that productivity can reach 15 tonnes per hectare per year. Increase in CPO has to be done because the market is wide open to new countries.