Compared to the previous month, Indonesia's reference palm oil price rose 5.18 percent (m/m) or USD $38.79 to USD $788.26 per ton in January 2017. Thanks to the El Nino and La Nina weather phenomenons (and a moratorium on new palm oil concessions) CPO output was curtailed in Indonesia in 2015 and 2016, implying some upward pressure for CPO prices. Indonesia is the world's largest producer and exporter of crude palm oil (followed by Malaysia). Most of Indonesia's CPO exports are shipped to India, the European Union, China, Pakistan, the Middle East, and Africa.

Read more: Overview and Analysis of Indonesia's Palm Oil Industry

Meanwhile, the government's reference price for cocoa beans in January 2017 fell 8.96 percent (m/m) to USD $2,343.97 per ton. Edward said this decline was caused by the drop in international cocoa bean prices. The export tax on cocoa beans stays at 5 percent in the first month of 2017.

Indonesia's Reference Crude Palm Oil Price:

Month      2015
     Price
(in USD/ton)
     2016
     Price
(in USD/ton)
     2017
     Price
(in USD/ton)
January      669.4      557.2      788.3
February      678.5      628.9
March      662.0      618.8
April      654.6      713.1
May      653.2      703.1
June      665.0      689.5
July      630.6      658.0
August      593.3      734.8
September      526.9      768.6
October      578.2      722.0
November      552.2      743.2
December      560.2      749.5

Source: Trade Ministry of Indonesia

Indonesian Palm Oil Production and Export Statistics:

  2008 2009 2010 2011 2012 2013 2014 2015  2016
Production
(million tons)
 19.2  19.4  21.8  23.5 26.5  30.0  31.5  32.5  30.0¹
Export
(million tons)
 15.1  17.1  17.1  17.6 18.2  22.4  21.7  26.4  22.5¹
Export
(in USD billion)
 15.6  10.0  16.4  20.2 21.6  20.6  21.1  18.6  16.0¹

¹ indicates forecast
Sources: Indonesian Palm Oil Producers Association (Gapki) & Indonesian Ministry of Agriculture

Bahas