Increase in Production Potential to Press Malaysian CPO Price

By : Abraham Sihombing And Aldo Bella Putra | Tuesday, October 24 2017 - 21:00 IWST

INDUSTRY.co.id - Jakarta - Despite opening up to 2,793 ringgit per ton price on Tuesday (24/10/2017), Malaysia crude palm oil (CPO) price is expected to decline again.

"The market players are worried about the increase in CPO production volume and the potential strengthening of the Malaysian ringgit rate against the US dollar," said Faisyal, a commodity stock analyst at PT Monex Investindo Futures, in Jakarta, Tuesday (24/10/2017).

On Monday, the Southern Palm Oil Millers Association (SPOMA) published data on Malaysia's CPO production volume for October 1-20, 2017 which showed a 20.6% increase over the same period in the previous month.

Meanwhile, Malaysian ringgit rates up to 10:50 pm today are observed at the level of 4.2325 per US dollar, or rose 0.08%. The strengthening of the ringgit rate makes CPO prices more expensive for other currency owners.

The price of CPO at the close of trading yesterday ended at 2,787 ringgit per ton, or 1.7% higher than on the previous trading day. The price increase is supported by rising prices of other vegetable oils and exports.

In the future, according to Faisyal, if the price of CPO can survive stable, then the price will likely reach 2,825 ringgit per ton. If the opportunity price can be exceeded, then the price of CPO Malaysia has the potential to reach 2855 per unit.

"Meanwhile, if the price of CPO drops and breaks 2,785 ringgit per ton, then the price of vegetable oil is likely to fall to the level of 2760 ringgit per ton," added Faisyal. (Abraham Sihombing)

News Comment

Today's Industry

Totolink outlet. (Photo: Public Relation of Totolink)

Kamis, 11 Juli 2024 - 22:08 WIB

Totolink Strengthens Commitment to Innovative and Reliable Network Solutions for Indonesia

Marking a strategic step, Totolink Indonesia proudly announces the enhancement of its head office in Jakarta, located at Harco Mangga Dua Blok E No.28, Sawah Besar, Central Jakarta.

The President Commissioner of Bersama Digital Data Centres (BDDC), Setyanto Hantoro (fourth right) and The President Director of BDDC, Angelo Syailendra (third right) during the BDDC JST1 Inauguration Ceremony in Jakarta on Wednesday (10/07/2024).

Kamis, 11 Juli 2024 - 19:03 WIB

BDDC Inaugurates JST1 TIER IV Data Centre in Jakarta to Strengthen Digital Infrastructure

Bersama Digital Data Centres (BDDC), an in-town data centre provider with interconnectivity and integrated digital systems, inaugurated its 5 MW Tier IV data centre facility, JST1 (Jakarta Selatan…

The Board of Directors of PTT Global Chemical (GC) pose for a group photo after receiving the prestigious SNI (Indonesian National Standard) certification for its InnoPlus Polyethylene resin. (Photo: GC Public Relations)

Kamis, 27 Juni 2024 - 15:30 WIB

Global Chemical Achieves Prestigious SNI Certification for InnoPlus Polyethylene Resin

PTT Global Chemical (GC) is proud to announce its successful attainment of the prestigious SNI (Indonesian National Standard) certification for its InnoPlus Polyethylene resin.

 Financial Literacy

Rabu, 26 Juni 2024 - 22:47 WIB

The Importance of Financial Literacy

Financial literacy refers to the ability to understand and use various financial skills effectively, including personal financial management, budgeting, and investing.

Unveiling New Opportunities

Rabu, 26 Juni 2024 - 14:52 WIB

Unveiling New Opportunities

As we step into 2024, the cryptocurrency landscape continues to evolve, presenting unprecedented opportunities for investors, developers, and enthusiasts.