Jakarta, CNBC Indonesia – Price crude palm oil (CPO) weakened this week, due to the explosion of Covid-19 disease cases in India. India is one of the largest CPO consuming countries in the world. The explosion of the Covid-19 case risks triggering a lockdown, which will slow down the economy, and the demand for vegetable oil will decline.
Reporting data from Refinitiv, CPO prices for July contracts fell 1.5% this week to 3,868 ringgit / ton, after climbing 5.7% last week.
India imports a lot of palm oil which is used as cooking oil. It’s just that palm oil tends to be used more in the hotel sector and not in households. At the moment lockdownMany hotels and restaurants have closed, thus posing a threat to palm oil imports.
On Friday (30/4/2021) the country announced that there were 386,452 thousand new daily cases with 3,498 deaths.
That figure is the highest record in history. For a week in a row, the number of new cases in India per day has always increased to more than 300 thousand to 350 thousand. The record was re-created yesterday after daily cases exceeded 400,000.
In just one month the average daily case of Covid-19 infection in India jumped 7 times. A month ago, the average daily case of Covid-19 infection in India was recorded at 44,000. But now the figure is approaching 300 thousand cases per day.
India is now becoming hotspot just the spread of Covid-19, and became the country with the second highest number of cases in the world. Launching Worldometer data, the total Covid-19 cases in India reached 19.55 million, with 3.35 million active cases.
However, palm oil prices are predicted to remain strong in the first half of this year due to tight supplies. The increase in global palm oil prices has made the domestic benchmark CPO price increase.
Meanwhile, RI’s reference CPO price in May 2021 is pegged at US $ 1,110 per ton. The reference price is up compared to last month which was only priced at US $ 1,093.83 per ton. This means that the export tax for crude palm oil in May will be higher to US $ 144 per tonne.
Meanwhile, export levies for vegetable oil will remain unchanged at US $ 255 per tonne. The April export tax for crude palm oil stands at US $ 116 per tonne.
CNBC INDONESIA RESEARCH TEAM
(pap / pap)
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