Indonesia’s CPO reference price for August was set at US$1048.62/ton or down US$45.53 from June, declining for the second successive month to reach the lowest in 5 months. The lower reference prices will bring the tax rate on CPO down to US$93 for August shipment compared to US$116 in July. The levy was left unchanged at US$175. The decline was widely expected and priced-in to export prices from the start of this week.
The reduction means the tax and levy paid on CPO for August shipment will be lower to US$268 from US$291 previously. RBD palm olein tax and levy will be US$171 or down US$16 and CPKO lower to US$291 or a decrease of US$47 from the previous month.