Indonesian levy collection will have neutral impact CPO prices

With the Indonesian government having begun the collection of crude palm oil (CPO) and processed palm oil levies on July 16, analysts believe the impact on CPO prices is neutral but expect Malaysian exports to benefit due to lesser supply coming from Indonesia.

Based on the research arm of Kenanga Investment Bank Bhd’s (Kenanga Research) channel checks, the authorities there have indeed started collecting the US$50 per metric ton (MT) CPO levy and US$30 per MT processed palm oil (PPO) levy.»