Pekanbaru, Riau (Antarariau.com) - Shrinking price of soybean oil in international market in the past week has resulted in the price fall of crude palm oil (CPO) in Riau from Rp1,946.11 to Rp1,809.14 per kg for the next week.
"Demand for CPO was weak to follow the shrinking trend in the soybean oil market. The price of soybean oil had dropped in the past week on a surge in supply from producing countries including the United States, Argentina and Brazil, secretary of price CPO determination team for Riau, Rusdi said here on Tuesday.
The soybean oil price in international market determine the price of CPO as the two commodities are rivals in the vegetable oil market in the world, Rusdi said here on Tuesday.
"There are other factors causing the CPO price fall including weak demand mainly from Europe and Middle East," he said.
The shrinking price of petroleum also had its effect on the market of CPO. In September 2016, oil prices fell around 15 percent from the same period last year.
Surplus in supplies of soybean oil and rapeseed oil also caused the weak demand for CPO, Rusdi said.
"The price of CPO is only slightly cheaper than the price of soybean that many importers opted to import non CPO oils," he said.
The rise in the reference price of CPO in the past two months added to the marketing problem of CPO.
Indonesia is the world s largest producer of CPO and Riau is one of the largest producing provinces in the country.
Falling Price Of Soybean Oil Puts Pressure On CPO Market
