Increase in Export Volume Opportunity Increase CPO Price

By : Abraham Sihombing And Aldo Bella Putra | Wednesday, September 20 2017 - 21:00 IWST

INDUSTRY.co.id - Jakarta - The price of crude palm oil (CPO) opened at 2,783 Malaysian ringgit per ton on Wednesday (20/09/2017), or higher than Tuesday (19/09/2017).

"The increase is due to market participants considering an optimistic export data for September 2017," said Faisyal, an analyst with PT Monex Investindo Futures products commodities in Jakarta on Wednesday (20/09/2017).

According to the data, according to Faisyal, Malaysia's CPO exports during September 1-20, 2017 grew 25.4% compared to the same period in August 2017.

Meanwhile, Faisyal said, demand for CPO is expected to increase throughout September 2017 as major CPO consumers, namely China and India will now prepare their CPO reserves ahead of the Mid-Autumn and Diwali festivals, which will typically increase consumption of edible oil.

Another sentiment underpinning Malaysia's CPO price increase is the depreciation of the Malaysian ringgit rate against the US dollar (US). At 13:05 GMT, the ringgit weakened 0.04% to 4.1915 per US dollar. A weakened ringgit will make CPO prices cheaper for other currency owners.

Faisyal explained, technically, CPO price point of resistance is at the level of 2800 ringgit per ton. If the level is reached, then the price of CPO will continue to propagate up to 2,825 ringgit per ton.

"Meanwhile, the CPO price support point is at 2,765 ringgit per ton. If the price of CPO falls and breaks those levels, then the CPO price has the potential to touch the lowest point of 2,740 ringgit per ton," Faisyal said. (Abraham Sihombing)

News Comment

Today's Industry

L/R: Alwin Zecha, Founder - Pacific Leisure Group, Thailand; Hiran Cooray Chairman - Jetwing Symphony PLC, Sri Lanka; and Akbar Shareef, Chairman & Chief Executive - Rakaposhi Tours (Pvt) Ltd., Pakistan (Photo by Global Travel Media)

Jumat, 16 Oktober 2020 - 17:15 WIB

PATA Honours Industry Leaders, Pioneers and Professionals at 69th Annual General Meeting

The following awards were presented during the 69th Annual General Meeting held online PATA Gallery of Legends Award, PATA Life Membership, and PATA Chair’s Award.

Evan Dumas, Regional Director, Southeast Asia, Check Point Software Technologies (Photo by Linkedin)

Jumat, 16 Oktober 2020 - 17:00 WIB

3 Key Principles Businesses Must Keep In Mind When Securing the Remote Workforce

It is critical that organisations take steps to secure the remote workforce to prevent falling victim to the next cyber attack.

Tim Mackey, Principal Security Strategist, Synopsys Cybersecurity Research Centre (CyRC) (Photo by Synopsys)

Kamis, 15 Oktober 2020 - 19:05 WIB

Common Questions When Establishing an Organisational Culture of DevSecOps

Organisations are introducing security earlier in the software development life cycle (SDLC) by expanding close collaboration between development and operations teams in the DevOps movement…

Evan Dumas, Regional Director, Southeast Asia, Check Point Software Technologies (Photo by Linkedin)

Rabu, 14 Oktober 2020 - 21:45 WIB

Securing the Remote Workforce in the New Normal — 5 New Cyberthreat Trends to Look Out For

Check Point Research have observed 5 new trends in cyberthreats that were triggered by the outbreak of the coronavirus.

Hypertherm, a U.S. Based Manufacturer of Industrial Cutting Systems and Software

Rabu, 14 Oktober 2020 - 21:30 WIB

Hypertherm Releases New CSR Report with Updates On Community Outreach, Environmental Impact, and Associate Well-Being

Hypertherm, a U.S. based manufacturer of industrial cutting systems and software, announced the release of its 2019 Corporate Social Responsibility Report.