Today, Malaysian CPO Price Breaks to 2,744 Ringgit per Ton
By : Abraham Sihombing And Aldo Bella Putra | Monday, October 09 2017 - 21:00 IWST
INDUSTRY.co.id - Jakarta - The price of crude palm oil (CPO) was recorded at 2,744 Malaysian ringgit per ton at the opening of trading on Monday (09/10/2017), or an increase compared to last weekend's trading.
"The increase came amid sentiment for rising crude oil and soybean oil prices. The increase is predicted to be limited by the strengthening of the Malaysian ringgit rate, "said Faisyal, an analyst at PT Monex Investindo Futures, in Jakarta, Monday (09/10/2017).
As is known, the price of West Texas Intermediate (WTI) crude oil rose to US $ 49.50 per barrel on Monday (09/10/2017). The price increase halted price declines that occurred at the end of last week.
The decline in prices that occurred at the end of last week due to the expectation that Saudi Arabia will continue the cuts in oil production to support the increase in crude oil prices in global markets.
"In addition, WTI price increases are also caused by the decline in the number of new oil drilling rigs in the United States," said Faisyal.
Faisyal also said the price of soybean oil contract in the US on this day rose in 4 consecutive trading sessions. That was triggered by concerns over dry weather in South America that pushed up to the highest price position in the past two weeks.
While the Malaysian ringgit rate at 10:21 pm monitored strengthened 0.14% to 4.2300 position. Strengthening the Malaysian ringgit rate will make CPO prices more expensive for other currency owners.
According to Faisyal, if it continues to strengthen, then the CPO price has the potential to break the resistance point at 2,765 ringgit per ton and continue to reach 2,790 ringgit per ton.
"However, if the price of CPO drops to a level of 2,700 ringgit per ton, the price of vegetable oil will continue to decline to 2,675 ringgit per ton," Faisyal said. (Abraham Sihombing)