Prices for vegetable oil increased amid the increase in Indonesia's export duty

against the background of rising world prices for palm oil, the government of Indonesia since December 10, increases export duty on crude palm oil from fixed 55 $/t to 55-255 $/t depending on prices at the time of shipment. For the current price level of palm oil duty will amount to 150-200 $/t compared to 3 $/t in November and was originally scheduled to increase to $33/ton in December. This will dramatically reduce the competitiveness of Indonesian palm oil compared to Malaysia.

Such news to stop the fall of prices on vegetable oil which lasts from the beginning of the week.

Futures on palm oil exchange in Malaysia rose 0.5% to 3332 Ringgits/t or 818 $/t

On the stock exchange in Dalian futures for palm oil increased by 2% to 6662 yuan/ton or 1198 $/ton, and soybean oil – by 2.4% to 7860 yuan/ton or 1198 $/t

Futures on soybean oil at the Chicago Board of CBOT rose yesterday by 1.9% to 832,7 $/t, offsetting the previous two-day drop.

According to the experts of Oil World, in October, Indonesia has increased in comparison with September palm oil exports from 2.2 to 2.36 million tonnes, which is still inferior to 2.54 million MT October 2019 if the export of refined palm oil increased from 1.6 to 1.77 million tonnes, raw – decreased from 518 to 506 thousand tons.

In October, the volume of palm oil exports to China increased in comparison with September from 436 to 471 thousand tons, in India – from 317 to 334 thousand tons, in the EU – from 283 to 310 thousand tons, Pakistan – from 172 to 205 thousand tons, Myanmar, from 71 to 102 thousand MT, United States – from 58 to 106 thousand tons.

During January – October 2020, Indonesia has exported 21.6 million tons of palm oil, second with 24.3 million tonnes shipped during the same period of 2019 In particular, exports of refined sunflower oil reduced from 17.1 to 14 million tons and crude – increased from 5.7 to 5.8 million tons.

the Predicted capacity of palm oil production in Indonesia and Malaysia against the expected precipitation increases pressure on prices, which are now at 8-year high.