Press Release
Indonesian Palm Oil Association (IPOA)

PRODUCTION LOW, PALM OIL PRICE STAYS HIGH

The exports of palm oil products in September 2021 dropped to 2.886 million tons after rising to 4.274 million tons in August 2021. The export value of palm oil products also decreased to US$3.111 billion from US$4.433 billion in August. The biggest drop of export volume was seen to India by 683.0 thousand tons to 275.5 thousand tons (-71.3%), to China by 351.8 thousand tons to 467.4 thousand tons (-42.94%), to Netherlands by 169.6 thousand tons to 33.46 thousand tons (-83.5%) and to Malaysia by 157.1 thousand tons to 35.1 thousand tons (-81.74%).

The export volume to European Union (EU) as a whole dropped by 243.2 thousand tons to 219.6 thousand tons (-52.54%). Year on year (YoY) as of September 2021, the export to China had been 25.7% higher than that of 2020, to Malaysia had been 52.0% higher , to India 24.4% lower, to Netherlands 0.4% lower and to EU as a whole at 8.1% lower.

The CPO price (Cif Rotterdam) in September was US$1,235/ton higher than that of August at US$1,226/ton, while the price of soybean oil (Dutch, ex mill) tumbled from US$1,435/ton to US$1,405/ton, sunflower oil (FOB NW Europe) decreased from US$1,380/ton to US$1,333/ton and rapeseed oil (Dutch FOB) rose to US$1,606/ton from US$1,486/ton. The price increase of palm oil was possibly caused by the low stock in early September at only 3.4 million tons, which was 1.1 million tons lower than the stock in August.

The local consumption in September reached 1,475 thousand tons, which was relatively the same with that of August at 1,465 thousand tons. The consumption for foods dropped to 672 thousand tons from 718 thousand tons in August (-6.4%), for oleochemical relatively stable, while for biodiesel rose to 622 thousand tons from 569 thousand tons in August (+9.3%).

Indonesia’s production of CPO in September reached 4,176 thousand tons, a decrease of around 1.0% from that of August and had not yet increased as expected. So was the production of Malaysia, which reported a decrease of 0.39% from its production in August. With low production and decreased exports, the final stock of palm oil in September still increased to 3.65 million tons from 3.43 million tons in August.

Jakarta, 11 November 2021
Indonesian Palm Oil Association (IPOA)

For further information, please contact:

Mukti Sardjono
Executive Director GAPKI
Phone/Fax:
021-57943871
Fax. 021-57943872

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