Rising demand boosts oil palm prices

BANGKOK, June 17 (TNA) - The Thai Ministry of Commerce reports that the prices of oil palms on the domestic market have been increasing, thanks to the rising demand for crude palm oil (CPO). Whichai Phochanakij, Director-General of the ministry's Department of Internal Trade, told journalists of the update on Monday, stating that most oil palms are now sold at about 3.50 baht per kilogram on the domestic market, from lower than 3.00 baht per kilogram earlier. Whichai attributed the rising prices of oil palms to cooperation from all parties to use more CPO, boosting the prices of oil palms on the domestic market. "Only crude oil palms and ripe oil palms grown in areas very far away from the locations of palm oil manufacturing plants that their prices are now, after deducting the transport cost, lower than 3 baht per kilogram", Whichai explained. Whichai said the rising demand has also boosted the prices of CPO on the domestic market to 19.50-20.00 baht per kilogram so far. Besides, Thailand's total CPO stock has dropped to less than 300,000 tons, from more than 300,000 tons earlier, and his department has targeted to reduce the total CPO stock nationwide to about 250,000 tons over the next three months. To meet the target, the senior official acknowledged that his department will promote more use of CPO, including opening more B20 bio-diesel stations across Thailand soon, from 1,113 to about 2,000, and to support more use of the B100 bio-diesel in the local farm sector. The senior official revealed that his department will also seek expanding cooperation from the state-run Electricity Generating Authority of Thailand (EGAT) to purchase more CPO for its power production, targeted at over 226,000 tons, after EGAT purchased about 160,000 tons of CPO earlier this year. According to the senior official, his department has not ordered wholesale and retail stores to increase the prices of cooking palm oil and will closely monitor the entire market price mechanism of palm oil in the country in order to keep it at optimal levels in both those of CPO and cooking palm oil. In the meantime, the Rubber Authority of Thailand (RAOT) and a research and development institute of rubber innovations under Prince of Songkhla University (PSU) in the Thai South have agreed to work together to help develop more processed or innovative natural rubber products for natural rubber businesses in the country in order to boost the prices of locally-grown natural rubber. (TNA)