- In a week (19/03 – 23/03) the price of ICDX’s CPO rose 0.17%.
- ICDX’s CPO highest volatility is 0.08%.
The price of Palm Oil increased due to Malaysian CPO production data for February 2018 decreased to 1.342.805 metric ton compared to January 2018 at 1.586.662 metric ton and Malaysian CPO export data for March 1st – March 20th 2018 increased to 926.185 metric ton compared to February 1st – February 20th 2018 at 815.183 metric ton.
Meanwhile, Indonesia and Argentina succeeded in winning an appeals at the European Union Court of Justice in the case of the imposition of Antidumping Import Duties. The European Union abolished the imposition of Antidumping Import Duties at 8,8% - 23,3%, which has been applied since November 19th, 2013 for Indonesian biodiesel products. The removal of Antidumping Import Duties will be effective as of March 16th, 2018. With the abolition of Antidumping Import Duties, Indonesia may re-export biodiesel without any additional costs. Under the European Union Law, importers allow to claim back import duties paid in the past. This would bring a good impact for importers since United States imposed import duties of more than 70% and India imposed import duties on Palm Oil of 44%.
Price Performance Indicators
| SOYBEAN OIL
|| USD 65.88
|| MYR 3.9130
Vegetable Oil Focussed on U.S. and China Trade War
Trade war between China and U.S. escalated, with China responded by unveiling tariffs on $3 billion U.S products. As an information in 2017, soybeans purchased by China were closed to one-third of U.S. production. The issue would effected the demand for vegetable oil, especially Palm Oil – substitution oil for soybean oil, if the Chinese were subjecting the soybean to be included on China’s import tariff.
CPO Export Duty to Europe Removed
Duty that previously planned to be applied on CPO export to Europe were removed. These policy were applied for the 13 Indonesian and Argentine companies who placed their objection to the European Court of Justice. For this decision, the demand for CPO will kept in place, especially the demand from European Union.
WEEKLY ECONOMIC DATA & EVENTS CALENDAR
||Malaysia – Palm Oil Export Data (1 - 25 Mar)
||Argentina – Interest Rate Decision
||USA – API Crude Oil Stock Change
||Argentina – Industrial Production YoY (Feb)
||Malaysia – Palm Oil Export Data (1 - 31 Mar)
Source: ICDX Research