Production Slows, Malaysia CPO Price has Potential to be Stronger
By : Abraham Sihombing And Aldo Bella Putra | Wednesday, September 27 2017 - 22:00 IWST
INDUSTRY.co.id - Jakarta - Malaysian crude palm oil (CPO) prices rebounded to 2,739 ringgit a ton. That is caused by market players' concerns about the slowdown of CPO production in the neighboring country of Indonesia.
Production data published by Southern Oil Millers Association (SOMA) indicates a 0.8% decline in Malaysian CPO production over the period September 1-15, 2017.
"In addition, the performance of crude oil prices in the world market, the strengthening of soybean oil prices and the depreciation of the ringgit exchange rate against the US dollar also helped boost CPO price," said an analyst at PT Monex Investindo Futures, in Jakarta, Wednesday (27/09/2017) .
The analyst explains, Malaysian CPO price technically still has a chance to strengthen to reach its resistance point at 2,800 ringgit per ton. That's because the decline in CPO prices some time ago failed to penetrate to the support level at the level of 2680 per ton.
Meanwhile, according to the analyst, Indonesia's Ministry of Trade will maintain CPO export tax at zero percent for October 2017. The CPO export tax of zero percent has been in effect for six consecutive months. (Abraham Sihombing)