Malaysian CPO Price Probably Increases to 2,720 Ringgit per Ton
By : Abraham Sihombing And Aldo Bella Putra | Wednesday, October 04 2017 - 20:00 IWST
Kebun Kelapa Sawit (Ist)
INDUSTRY.co.id - Jakarta - The price of crude palm oil (CPO) in Malaysia Derivatives Exchange traded at 2,703 Malaysian ringgit per ton at 11:12 am on Wednesday (04/10/2017).
"The price of CPO is likely to reach 2,720 ringgit per ton because the price of palm oil is now moving in the range of 2,680-2,720 ringgit per ton," Putu Agus Pransuamitra, an analyst at PT Monex Investindo commodities exchanged in Jakarta, Wednesday (04/10/2017).
Putu said the rise in CPO prices was in line with the emergence of positive sentiment after the World Bank (World Bank) raised the projection of China's economic growth.
"Indeed, the price of CPO since yesterday (Tuesday, 3 October 2017-ed) just rose in the last five trading days. It is also supported by the weakening Malaysian ringgit exchange rate," said Putu.
The World Bank raised its forecast for China's economic growth for the year to 6.7% from 6.5% earlier. In addition, the international institution also raised the growth for 2018 to 6.4% from 6.3%.
China is one of the largest vegetable oil consumers in the world. World Bank projections indicate an increase in economic activity in the country's bamboo curtain.
The condition is expected to increase demand for vegetable oil, including CPO, so that the World Bank step is a positive sentiment for future CPO price movement. (Abraham Sihombing)