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

GoTo is a blend of Gojek and Tokopedia. (Photo: republika.co.id)

Jumat, 02 Desember 2022 - 22:48 WIB

Lockup Sentiment Only Temporarily, GOTO Owns Chance to Rebound

Shares of PT Goto Gojek Tokopedia Tbk (GOTO), which experienced selling pressure after end of the lock up period on November 30, 2022, are considered by a number of market participants to provide…

GoTo is a blend of Gojek and Tokopedia. (Photo: republika.co.id)

Rabu, 30 November 2022 - 19:35 WIB

GoPay's Dominance Drives Consistency in GOTO's Financial Business Segment Growth

The financial services business segment, namely GoTo Financial owned by PT GoTo Gojek Tokopedia Tbk (GOTO), recorded impressive business growth consistency. This is reflected in GoPay's dominance…

The President Director of PT Honeywell Indonesia, Roy Kosashi, clarified many kind of leading technology for Indonesia’s New Capital City, in Jakarta on Tuesday (29/11/2022). (Photo: PT Honeywell Indonesia)

Rabu, 30 November 2022 - 19:28 WIB

Honeywell Ready to Support Indonesia’s New Capital City with Sustainability Technologies and Solutions

Honeywell announced today that it is Ready Now to support the Nusantara Capital Authority (OIKN) in realizing their goal of making a sustainable and smart forest city. OIKN is the government…

Gibu Mathew, Vice President and General Manager in Asia-Pacific (APAC) in Zoho Corp. (special)

Rabu, 30 November 2022 - 11:22 WIB

How to Make SaaS Work for Small and Medium-Sized Businesses

Southeast Asia's digital transformation has been impressive as the region is now poised to reach a projected digital economy worth USD360 billion by 2025. With digitalisation, the region bore…

PT Dharma Polimetal ("Dharma Group") Triputra Group automotive component manufacturing company.

Senin, 28 November 2022 - 12:15 WIB

DRMA Remains Optimistic 2023 Automotive Still Rises, Targets Sales Up 20%

PT Dharma Polimetal Tbk (“DRMA”), a listed company engaged in automotive component manufacturing business sees the prospects for the automotive business in 2023 will still remain promising.…