CPO price remained high at US$1,177 per ton at the Rotterdam commodity exchange and at Rp8,737 per kg at the local commodity exchange on June 8, treasurer of the North Sumatra chapter of the Indonesian Palm Oil Producers Association (Gapki) Laksamana Adiyaksa said here on Friday.
The higher CPO price was the result of tight supplies from CPO producing countries including Indonesia, higher oil prices and strong demand, he said.
He predicted the CPO price would remain high and increase further as CPO producers would likely tighten exports amidst stable demand.
The corporate service director of PT.ANJ Agri Siais, Hari Witono, said fresh fruit bunch production declined because of the dry season.
The production would likely begin to increase in August or September. However, it would increase slightly because of weather anomaly, he said.
The decline in fresh fruit bunch production caused its price to remain high at Rp1,670 a kg, he said.
North Sumatra`s CPO exports mostly go to India, China and Europe. (*)
Editor: Kunto Wibisono
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