Palmoilmagazine, KUALA LUMPUR – In the competition, (crude) palm oil from Malaysia is defeated by Indonesia because the Government of Indonesia minimizes the levy which showed that Indonesia really focuses to reduce the stocks for the last few months.
“As the result, the exporters from Malaysia get losses. First thing first, the price (in Indonesia) is cheaper than it from Malaysia,” David Ng of Iceberg X Sdn Bhd., said.
Indonesia also extended the levy for the next couple of months or until 31 October 2022 to escalate palm oil exports.
That is why, David told, Malaysia could also cut off export levy. Malaysian Palm Oil Board has its CPO reference price. If it gets cheaper, the CPO levy could be cheaper.
“Based on the reference price for the past few weeks, it is clear that we have to minimize the tax,” he said, as Palmoilmagazine quoted from The Edge Markets.
Palm oil levy structure in Malaysia starts from 3% for CPO at about RM 2,250 to RM 2,400 per ton. The maximal tax is 8% for the CPO is more than RM 3,450 per ton.
David Ng continued CPO should have significant price discount compared to soyoil which is sold at US$ 593 per ton. He predicted it could be cheaper to be about US$ 300.
“If seeing other vegetable oils, palm oil is interesting in its price. If you see palm oil to soyoil, the price difference would be about US$ 600 and not more than it though the price gap could be minimized to be US$ 300,” he said.
David continued we should see palm oil plays its bigger roles in vegetable oil market because the stock is abundant. “The price is cheaper than other vegetable oils,” he said. (T2)
