CPO Price Live and Why CPO Price Decline Significant ?

Thursday, October 16, 2008 3 comments

CPO Price Live

For couple of days I tried to find where to find the Crude Palm Oil (CPO) Price Live.
After googling and try to make contact with Green Palm, finally I got the sites to watch and monitor CPO Price Live :

I hope this sites will useful for you who need the CPO Price Live...

WHY CPO Price Decline?

Crude Palm Oil (CPO) price continue decline in this week. Today,
the CPO price touched $467 per MT, compare with two months ago, the CPO price still above $1000 per MT.
This price is the lowest since 2006. Market forecast and predict the CPO price can be decline through the decrease of CPO demand.

Some factors cause the CPO price decline significant are:
  • Global economic crisis
Start from US economic down cause low of CPO demand. Some countries reduce their CPO import, indeed some of them cancel CPO contract to the CPO producer such as Indonesia. Today the CPO demand from Europe and US decrease with significant and the stock of CPO at CPO producer country, such as Indonesia, predicted will increase to 3 billion Ton.
  • Overproduction
The CPO producers country make the supply bigger than demand. This is the basic economic theory, when supply bigger than demand
  • Good harvest of soil bean
Soil bean harvesting can trigger decline of CPO price. Because Soil Bean is substitute of CPO. As good harvest soil bean in US cause reduce demand of CPO.
  • Decline of Crude Oil
When crude oil price high, the demand of CPO increase as raw material to get Ethanol as substitute energy (Bio Diesel). Now Crude Oil price decline to US$ 71 per barrel then the demand of CPO automatic decline.

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