Malaysian palm oil exports face pressure from Indonesia’s push
In Malaysia, Free Malaysia Today reported that Malaysian palm oil exports could tumble for a third straight month in June if buyers favour cheaper Indonesian supplies as Jakarta’s overhaul of commodity shipments sparks a push to move cargoes before the new rules fully take hold.
An Indonesian plan to take control of exports began on June 1, with producers expected to start submitting sales figures via newly formed state-owned firm PT Danantara Sumberdaya Indonesia, according to the report.
The system is still in a transition phase, and companies are allowed to keep handling transactions until Danantara takes over specific export activities as early as September, or by Jan. 1 at the latest, senior officials said last week.
There were initial expectations the new Indonesian rules would divert demand to Malaysia, but that hasn’t happened so far because key importers, especially those in India, had already made ample purchases in the first quarter, according to Paramalingam Supramaniam, a director at Selangor-based brokerage Pelindung Bestari Sdn.
“If Indonesia starts pushing out more exports until the new policy is fully implemented, that would intensify competition with Malaysia and weigh on its shipments,” he said.
Category: Food & Agriculture
