CPO Price Increase Impedes Strengthening Malaysian Ringgit Rate

By : Abraham Sihombing And Aldo Bella Putra | Friday, September 08 2017 - 22:00 IWST

INDUSTRY.co.id - Jakarta - The strengthening of the Malaysian ringgit exchange rate of 1.74% in the last four days reduced the interest of foreign investors to crude palm oil (CPO). This resulted in CPO price on Friday (08/09/2017) opened at a lower level than the trading session the previous day.

In fact, the price of CPO on Thursday (07/09/2017) had risen sharply thanks to a positive sentiment on the EU decision related to anti-dumping biodiesel policy. In addition, the stability of soybean oil performance helped sustain CPO prices.

Currently, investors are putting off Malaysia CPO export data for the period of 1-10 September 2017 from ITS and SGS, as well as CPO production data to be published by Malaysia Palm Oil Board (MPOB) on September 11, 2017.

Malaysia's CPO exports in August 2017 are forecast to rise 1.6% to 1.42 million ton compared to July 2017. The increase in exports is believed to offset rising production, as demand from India and China is expected to remain high ahead of the festive holiday in the coming months.

Technically, according to analysts of commodity products PT Monex Investindo, CPO price is still likely to rise to test the level of 2,820 ringgit per ton before penetrating the next psychological resistance point at 2900 levels.

However, the strengthening of the Malaysian ringgit rate that limits the CPO price hike could depress the Malaysian palm commodity, even pressing it to a level of 2,700 per ton. If this happens, then the price of CPO Malaysia potentially continues to decline to 2620 ringgit per ton. (Abraham Sihombing)

News Comment

Today's Industry

A total of 55 health professionals who participated in the Binawan Europe program, in the form of international career development scholarships in Austria. (Photo: The Public Relations of Binawan University)

Jumat, 02 Mei 2025 - 10:46 WIB

Binawan and Government Support Indonesian Nurses in Europe through Scholarships

In the midst of the viral #KaburAjaDulu hashtag as a symbol of the young generation's disappointment with domestic working conditions, Binawan responded with real action: dispatching Indonesian…

SUNeVision Initiates MEGA IDC Phase Two Development

Jumat, 28 Maret 2025 - 22:21 WIB

SUNeVision Initiates MEGA IDC Phase Two Development

SUNeVision, the technology arm of Sun Hung Kai Properties (SHKP), today announced the commencement of construction for Phase Two of MEGA IDC in Tseung Kwan O. As Hong Kong's largest data centre…

 PT Metrodata Electronics Tbk (“MTDL”)

Jumat, 28 Maret 2025 - 22:07 WIB

TDL Records New Revenue Record of IDR 25 Trillion in 2024 Ahead of 50th Anniversary

PT Metrodata Electronics Tbk (MTDL), the largest technology Company with the most complete IT and telecommunications products in Indonesia, managed to record a revenue of IDR 25 trillion in…

Wireless Logic

Jumat, 28 Maret 2025 - 22:00 WIB

Wireless Logic Selected By Thales As IoT Connectivity Partner

Wireless Logic, a global leader in IoT connectivity solutions has been selected by Thales, a global leader in advanced eSIM technologies, to enable secure, scalable and resilient IoT connectivity…

Microvista Expands International Presence with Mobile CT System ScanExpress

Jumat, 28 Maret 2025 - 21:53 WIB

Microvista Expands International Presence with Mobile CT System ScanExpress

The German specialist in industrial computed tomography and non-destructive testing, Microvista, announces the European expansion of its innovative mobile CT system, ScanExpress. The system…