Demand for Malaysian palm oil could rise if Indonesia raises exports levy — TA Securities
06/01/2025 (The Edge Malaysia) - Demand for Malaysia’s palm oil could rise if Indonesia goes through with its plan to raise export levy to support the higher biodiesel mandate, TA Securities said on Monday.
Raising the export levy to 10% would add US$26.49 per tonne, making Indonesian crude palm oil (CPO) even more expensive than Malaysia’s product, the research house said. The price of Indonesia’s palm oil is already at a premium of US$146.30 per tonne above that of Malaysia, it noted.
“We believe that the relatively high Indonesian CPO export tax and duty could drive demand toward Malaysian CPO, supporting its price and market share,” TA Securities said.
Demand for Malaysia’s palm oil could rise if Indonesia goes through with its plan to raise export levy to support the higher biodiesel mandate, TA Securities said on Monday.
Raising the export levy to 10% would add US$26.49 per tonne, making Indonesian crude palm oil (CPO) even more expensive than Malaysia’s product, the research house said. The price of Indonesia’s palm oil is already at a premium of US$146.30 per tonne above that of Malaysia, it noted.
“We believe that the relatively high Indonesian CPO export tax and duty could drive demand toward Malaysian CPO, supporting its price and market share,” TA Securities said.