Pekanbaru, Riau, (Antara.riau.com) - The price of crude palm oil (CPO) fell in Riau this week on shrinking demand from China.
"The decline in demand from China was marked with an increase in Chinese consumption of soybean," Rina Rosdiana, the secretary of the team for FFB price in Riau, said here on Wednesday.
As a result of the price of oil palm fresh fruit bunches (FFB) fell Rp1,438 this week from Rp1,470 kg per week last week in Riau, the country's largest producer of CPO.
"Change in lifestyle could have caused a greater favor for soybean in China," Rina said.
The trend is feared to continue through the rest of the year as exports in April fell 18.8 percent from the previous month to 373,000 tons.
Greater use of soybean would result in falling demand for CPO this year, Rina said.
However, the decline in Indonesia's exports to China could still be offset with growing domestic consumption, she said.
"CPO consumption in Indonesia is expected to grow 12.4 percent on-year in 2013," she said.
This year, China is expected to import around 59 million tons of soybean and the imports are predicted to rise 17 percent to 69 million tons .
Malaysia was also reported to post a decline in CPO exports to China down 12 percent year-on-year to 3.5 million tons in 2012.
CPO Price Down On Shrinking Demand From China
