Indonesia, Malaysia partner to prop up crude palm oil prices; accelerate $200 million replanting program

In Malaysia, the Indonesian and Malaysian governments announced that they would join forces to help prop up the price of crude palm oil. CPO has fallen from a high of more than $1000 earlier this year to $445 at the present time, the result of falling demand and a rising US dollar. The governments said that among the measures to be undertaken is the acceleration of a planned $200 million oil palm replanting program, that would temporarily reduce supply and position the industry for stronger health going forward.

The replanting program would target oil palm trees more than 25 years old. The national governments hope to increase CPO prices to the $560-$720 range.

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