JAKARTA (Yosefardi) – Plantation company PT Sampoerna Agro Tbk (SGRO) plans to cut its export of crude palm oil (CPO) to 5% from current 10-15%, to help the CPO prices which now in declining.
Meanwhile, the domestic demand for CPO has surpassed the CPO production. The benchmark CPO contracts for December 2014 today declined RM17 to RM2128, but has gained 5% from its recent bottom.
Domestic price of CPO was Rp8700 per Kg (VAT 10% included). On Thursday (September 18), KPB Nusantara, the joint marketing office of state plantations, auctioned all of eight CPO packages off.
CPO sales contributed 81% to SGRO’s revenues, with its CPO price of Rp8,865 per Kg in the first half of 2014, a 38% jump from the same period of 2013. SGRO produced 142,045 tons of CPO in the first half of this year, a 43% rise.