The CPO price in export markets is around US$835 per ton for delivery in February and March, the North Sumatra branch of the Indonesian Association of Palm oil Companies (Gapki) said.
Association secretary Timbas Prasad Ginting said here on Monday the price on the domestic market is around Rp7,425 per kilogram.
"The price is still low although demand is on the increase as a result of less successful harvest in a number of countries of soybean," Timbas said
The CPO price is expected to increase with the rising demand but the Gapki did not hope for too much, he said.
The economic crisis still besetting Europe and the United States keeps the price fluctuating, he said.
Chairman of the Indonesian Palm Oil Council Derom Bangun said it is difficult to predict the trend of commodity market including CPO price amid the prevailing global condition.
He said the CPO price should increase with the shrinking supply of that commodity and soybean in the world market.
He said CPO supply is shrinking as harvest period has been over from August to November, 2012, but the price remain low.
He said if the price did not improve until the end of the year, the average selling price this year would be lower than last year or would be low US$90 per ton.
Last year, the selling prices of Indonesian CPO averaged US$1,000 per ton .
Indonesia is the world`s largest producers and supplier of CPO with Malaysia the second largest (*)
Editor: Heru Purwanto
Copyright © ANTARA 2013
