Oil World editor and CEO Thomas Mielke.
“A premium [in CPO’s price to soybean oil] is only possible during a short period of time,” Mielke said during a question and answer session at the Palm Oil Trade Fair and Seminar today.
“Long term, I expect palm oil’s discount relative to soybean oil will narrow for an annual average, and that this should already occur for 2021 and I expect this to continue,” he said.
Indonesian Palm Oil Association (GAPKI) vice chairman Togar Sitanggang said that at the end of 2019, CPO prices were above soybean oil prices.
“But the result was the switching of demand, which is not really good for palm oil because everyone started buying soybean oil and it returned to a premium.