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Palm Oil

Palm oil is the most widely-used vegetable oil in the world. Palm Oil is obtained from fresh fruit bunches (FFB) of the palm tree (Elaeis Guineensis) cultivated in plantations.

There are several commercial variants of palm oil available: Crude Palm Oil, Crude Palm Olein, RBD Palm oil, RBD Palm Olein and Palm Kernel Oil.

Indonesia and Malaysia are by far the largest producers of palm oil worldwide, together accounting for more than 80% of total global production.

The global price benchmark for Crude Palm Oil is referred to BMD (Bursa Malaysia Derivatives) and ICDX (Indonesia Commodity and Derivatives Exchange) for FOB term contract, and Rotterdam physical market for CIF term contract.

The Fundamental Drivers of The Palm Oil Market

Indonesia and Malaysia are the major producing and exporting countries. That makes the policies of government in both countries (i.e. export tax) have an effect on the prices.

The extreme weather conditions for palm output in Indonesia and Malaysia have an effect on the prices.

Wide fluctuations in the currencies of Indonesia and Malaysia also affect palm prices.

Since soybean oil competes with palm oil in the global vegetable oil market, hence global production, consumption and ending stocks of soya bean and other oilseeds have direct bearing on prices.

Crude oil movement also affects prices, as significant rise in energy prices lead to demand for alternate fuels like biofuel. Vegetable oils are also used in the production of biofuel.

Trading Hours: 09.30 – 05.00 WIB

CPOTR is a symbol of contract specifications for Crude Palm Oil (CPO) with 10 metric tons per lot in rupiah (IDR).

Trading Hours: 09.30 – 05.00 WIB

OLEINTR is a symbol of RBD (Refined, Bleached, and Deodorized) Palm Olein contract specifications of 10 metric tons per lot in Indonesian rupiah (IDR).