Press Release
Indonesian Palm Oil Association (IPOA)

PALM OIL INDUSTRY PERFORMANCE MARCH 2023

Production Picks Up, Stock Surges

The palm oil production during March 2023 saw a seasonal increase of around 12% for CPO or from 3,883 thousand tons in February to 4,349 thousand tons in March 2023 and for PKO from 369 thousand tons in February to 413 thousand tons in March 2023.

Reversing the production trend, the palm oil exports decreased from 2,912 thousand tons in February to 2,641 thousand tons in March 2023. The biggest drop was seen in processed palm oil products, from 2,254 thousand tons in February to 1,880 thousand tons in March. Based on country destinations, the export drop was seen to China (- 242.8 thousand tons), Egypt & Middle East (-129.4 thousand tons), Bangladesh (-50.5 thousand tons), India (-68.3 thousand tons), Netherlands (- 54.9 thousand tons) and Malaysia. Export increase was seen to the USA, Spain, Italy, Russia and Pakistan. The export drop causes export value decreased from US$2,687 million in February to US$2,259 million in March 2023, despite the price of CPO CIF Rotterdam in March reached US$1,030/ton, which was higher than the price in February at US$997/ton (+3,2%).

Unlike the price of palm oil, the price of other vegetable oils dropped in March 2023. The price of soybean (Ditch FOB ex mill) dropped by -9.9%, sunflower (FOB NW Europe) by  -9.4%, and rapeseed (Dutch FOB Ex mill) by 12.1%.

Domestic consumption increased from 1,803 thousand tons in February to 1,812 thousand tons in March. The consumption for food industries increased from 802 thousand tons in February to 911 thousand tons in March, for oleo-chemical industries rose from 185 thousand tons in February to 187 thousand tons in March, and for biodiesel industries dropped from 816 thousand tons to 714 thousand tons.

With the change in production, the consumption and exports, then final stock rose from 2,765 thousand tons in February to 3,138 thousand tons in March 2023. Considering the decrease of other vegetable oils’ prices, it is very likely that the price of palm oil will also drop.

Jakarta, 12 May 2023
Indonesian Palm Oil Association (IPOA)

For further information, please contact:

Mukti Sardjono
Executive Director GAPKI