Indonesia's trade ministry has raised its October export reference price for crude palm oil to US$1,042.15 a tonne, 3.44 percent above September, and lifted its cocoa bean reference price by close to 7.5 percent, according to an official notice published on 1 October, Global Agriculture reports.
The palm oil reference price, set monthly by the director general of foreign trade, Tommy Andana, is an average of three benchmarks over a rolling 30-day window, here 20 August to 19 September: the Indonesia CPO Exchange at US$938.89 a tonne, the Malaysia CPO Exchange at US$1,145.42 and Rotterdam at US$1,526.56.
The cocoa bean reference price was set at US$6,057.87 a tonne, up 7.49 percent, and the export reference price used for duty calculations at US$5,686, up 7.88 percent. Andana cited market conditions, international logistics costs and global trade dynamics; analysts link the rise to concern that the developing El Nino could cut cocoa output in West Africa.
Malaysia also raised its October reference price, to about 4,452.66 ringgit a tonne, putting its export duty at roughly 10 percent. The two countries, which supply more than 80 percent of the world's palm oil, do not formally coordinate prices. Palm oil has been supported through 2026 by Indonesia's push for higher biodiesel blending, which diverts more crude palm oil to fuel.
Photo: Achmad Rabin Taim / Wikimedia Commons (CC BY 2.0)
Source: Global Agriculture
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