Malaysian CPO Price Has Potential to Break the 2.840 Ringgit Position
By : Abraham Sihombing And Aldo Bella Putra | Tuesday, October 17 2017 - 19:00 IWST
INDUSTRY.co.id - Jakarta - Crude palm oil (Malaysia) is expected to break the price at 2,840 ringgit per ton. The price position can be achieved by Malaysian CPO if able to maintain price stability up to the psychological level of 2,800 ringgit.
"If the current bullish sentiment can continue to push the price up to 2,800 ringgit, then the price of CPO in the future is not impossible to touch 2,840 ringgit per ton," said a commodity analyst at PT Monex Investindo Futures, in Jakarta on Tuesday (17 / 10/2017).
The analyst revealed that, despite closing flat due to fall in soybean oil prices at the Chicago Board of Trade (CBOT) on Monday (16/10/2017), Malaysian CPO price in trading Tuesday (17/10/2017) is back strengthened.
"Today's price hikes are due to the high demand for CPO from India and China, Malaysia's CPO export increase in the first half of October 2017 and the rise in crude oil prices," said the analyst.
According to Intertek Testing Services (ITS), Malaysia's CPO export volume increased 10.3% in the first half of October 2017. Meanwhile, Societe Generale Suveillance (SGS) cited the 8.7% growth in export volume for the same period.
"The rise in CPO prices is also supported by the 1.4% rise in crude oil prices on Monday as a potential factional dispute in Iraq has disrupted exports," said the analyst. (Abraham Sihombing)