Increased Price of Soybean Oil Potentially Boost CPO Price Increase
By : Aldo Bella Putra | Monday, July 24 2017 - 12:07 IWST
INDUSTRY.co.id - Jakarta - The price of crude palm oil (CPO) was traded at 2,551 ringgit per tonne at 12 noon in Malaysia Derivatives Exchange on Thursday (20/07/2017). The CPO price indicates an increase in price compared to the previous day's price. Today's price of CPO has the potential to move in the range of 2,530-2,570 ringgit per ton. Meanwhile, CPO price in Indonesia Derivative Commodity Exchange is estimated to move in the price range Rp8,250-8,660 per kilogram.
"The increase in CPO price in Malaysia today is due to soybean oil price hike - which is the closest competitor of CPO, as well as an increase in Malaysia's export performance. The soybean oil price hike causes consumers to switch to using CPO to meet their needs, thus pushing the CPO price up, "said Putu Agus Pransuamitra, commodity market analyst at PT Monex Investindo, in Jakarta on Thursday (20/07/2017).
Meanwhile, Putu said that the soybean oil price hike was due to the potential depressed production volume of the commodity along with the arrival of warm and dry weather that hit soybean plantations in the United States and tended to cut soybean production which is the main raw material of soybean oil.
According to Intertek Testing Service data, exports of various Malaysian palm products during the period of 1-20 July 2017 increased 10.5% to 796,664 tons compared to the same period in the previous month of 721,020 tons.
"The increase in export volume of various palm products continues to provide a positive indication for improving the production performance of those products in Malaysia. Because the demand for these products previously expected to drop after the Ramadhan and Lebaran holidays, "said Putu. (Abraham Sihombing)