Demand From India And China Soars, CPO Reference Prices In July Strengthen
JAKARTA - The reference price (HR) for the palm oil commodity (CPO) for the July 2024 period was 800.75 US dollars per MT. This value increased by 21.93 US dollars or 2.82 percent from the June 2024 period which was recorded at 778.82 US dollars per MT.
Director General of Foreign Trade of the Ministry of Trade Budi Santoso said the government imposed a CPO export exit fee in the July 2024 period of 33 US dollars per MT and a CPO export levy of 85 US dollars per MT.
"Currently, the CPO Reference Price has increased which is away from a threshold of 680 dollars per MT," he said in an official statement, Sunday, June 30.
Budi said the determination of the CPO reference price was sourced from the average price during the period from May 25 to June 24, 2024 on the CPO Exchange in Indonesia amounting to US $ 761.56 per MT, the CPO Exchange in Malaysia amounted to US $ 839.93 per MT, and the Rotterdam CPO Auction Market amounted to US $ 957.77 per MT.
Furthermore, Budi said the increase in CPO reference prices in the July 2024 period was driven by an increase in soybean oil prices and world crude oil prices.
"As well as increasing demand, especially from India and China, which are not offset by increasing production," he explained.
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Meanwhile, Budi said that for the export of cooking oil products (refined, bleached, and deodorized or RBD palm olein) in branded packages and packaged with a net weight of less than 25 kilograms (kg), the duty was exempted.
The regulation is stated in the Decree of the Minister of Trade Number 804 of 2024 concerning the Refined, Bleached, and Deodorized (RBD) Brand List of Palm Olein in Branded Packaging and Packed with a Netto Weight of less than 25 kg.
The CPO exit fee for the period July 1, 2024 to July 31, 2024, refers to the Number 4 Attachment Letter C of the Minister of Finance Regulation Number 38 of 2024 amounting to 33 US dollars per MT. Meanwhile, the CPO Export Charge for the period July 2024 refers to Attachment Letter C of the Minister of Finance Regulation Number 103 / PMK.05 / 2022 jo. 154 / PMK.05 / 2022 amounting to 85 US dollars per MT.