Indonesia: Average Annual Palm Oil Indonesia: Annual Seed Sales (million seed)

Production Growth
171
10%
8% 128
103 94
76
3% 3% 52

2005-2010 2010-2015 2015-2020 2020-2027

2012 2013 2014 2015 2016
Source: USDA & Indonesia Oil Palm Seed Producer Association
 Malaysia: Average Annual Palm Oil
Production Growth
3.2%

2.3%

1.0%
0.7%

2005-2010 2010-2015 2015-2020 2020-2027

Source: USDA
40,000
38.500
33.00 36.500
35,000 34.000
30,500
30,000 28,500
26,200
25,000 23,600
22,000
20,500
20,000

15,000

10,000

5,000

-
2008/20092009/20102010/2011 2011/2012 2012/2013 2013/2014 2014/2015 2015/2016 2016/2017 2017/2018
 Vegetable Oil Production Projection 2017-2026
(MMT)
250

200 50 51
47 47 48 49
44 44 45 46
15 15 16 16 16
150 14 14 15 15
14 27 27 28 28 29
25 25 26 26 26
100 57 57 58 59
51 52 53 54 55 56
50 59 60 61 62 63 64 65 66
57 58
-
2017 2018 2019 2020 2021 2022 2023 2024 2025 2026
CPO Soy Oil Rapeseed Oil Sunflower Oil Other

Source: OECD-FAO Agricultural Outlook 2017-2026 (total veg oil production & Oil World (production share by edible oil type)
 • Palm oil has maintained its
price advantage among other
major vegetable oils on the
back of much higher
productivity.

• The oil palm tree is the most

efficient oil crop in terms of
land use. It has the highest
yield compared to other oil
crops per hectare of land.

Source: World Bank Commodity Price Outlook

 Global Harvest Area of Major Vegetable Oils Global Production of Major Vegetable Oils
(Million Ha) (Million Ton)
200 170

150 120
100
70
50
20
0
2011 2012 2013 2014 2015 2016 2017 -30 2011 2012 2013 2014 2015 2016 2017

Palm Oil Rape Oil Soy Oil Sunflower Oil Palm Oil Rape Oil Soy Oil Sunflower Oil

Source: United States Department of Agriculture

• While expanding rapidly in the past two decades, palm oil’s global harvest area is the
smallest among four major vegetable oils, accounting for around 7% of total harvest
area.

• Palm oil production, however, has contributed close to 32% of global supply of four
major vegetable oils

• The above-mentioned facts further confirmed the excellent efficiency of palm oil in
terms of production, higher than any other vegetable oils.
 Vegetable Oil Consumption Projection 2017-2026
(MMT)
250

200
60 60 61
56 57 58 59
53 54 55
150 13 13 13 13
12 12 12 12
11 12 27 28 28 29
25 25 26 26 27
25
100
51 51 52 53 54 55
47 48 49 50
50 59 60 60 61
53 54 55 56 57 58

-
2017 2018 2019 2020 2021 2022 2023 2024 2025 2026
CPO Soy Oil Rapeseed Oil Sunflower Oil Other

Source: OECD-FAO Agricultural Outlook 2017-2026 (total veg oil production & Oil World (consumption share by edible oil type)
Palm Oil Price Outlook
 CPO Price (cif Rott., USD per MT)
1,200.00

1,000.00
962

780 811
800.00 718

600.00

400.00 512

200.00

Nov
Nov

Nov

Nov

Nov
Mar
May

Mar
May

Mar
May

Mar
May

Mar
May
Jan

Jan

Jan

Jan

Jan
Sep

Sep

Sep

Sep

Sep
Jul

Jul

Jul

Jul

Jul
2013 2014 2015 2016 2017
 2016
2015

Jan-Aug
Indonesia's Palm & Palm Kernel Oils Exports Total Volumes
(in 1000 Ton)
2017
2015 2016 Jan-Aug 2017
China 3,990.52 3,227.97 2,096.80
EU 4,233.15 4,370.56 3,456.16
India 5,798.78 5,783.85 5,214.18
USA 758.55 1,082.93 736.80
Pakistan 2,186.88 2,066.50 1,454.82
Bangladesh 1,092.18 922.85 841.32
Middle East 2,113.08 1,979.41 1,323.46
Africa 1,984.64 1,521.67 1,574.10
Others 4,242.71 4,156.83 3,731.99
 CPO Price of CPO Vs. Crude Oil Crude Oil
900.00 60.00
US$/MT

US$/Barrel
800.00
50.00
700.00
600.00 40.00
500.00
30.00
400.00
300.00 20.00
200.00
10.00
100.00
- -
Nov

Nov
May

May
Mar

Sep

Mar

Sep
Jan

Jul

Dec
Jan

Jul

Dec
Apr

Aug

Apr

Aug
Feb

Jun

Feb

Jun
Oct

Oct
2016 2017
Palm Oil, Crude (cif Rott., USD per MT) Crude Oil (NYMEX, Dollars per Barrel)

Sources: http://www.indexmundi.com/ and www.eia.gov, 2017

Update May 2017
1100

1000

900

800

700

600

500

400
Oct-15

May-17
Jul-16
Aug-16
Dec-15

Jun-16

Oct-16

Dec-16
Mar-16

May-16

Mar-17
Apr-17
Sep-15

Nov-15

Jan-16

Apr-16
Feb-16

Sep-16

Jan-17
Nov-16

Feb-17
Palm oil Soybean Oil Sunflower oil Rapeseed Oil

Description: Palm oil, Malaysia Palm Oil Futures (first contract forward) 4-5 percent FFA, US Dollars per Metric Ton