Export Increases, Malaysia CPO Price Should Rise
By : Abraham Sihombing And Aldo Bella Putra | Tuesday, October 31 2017 - 21:00 IWST
INDUSTRY.co.id - Jakarta - Despite opening lower at 2,829 Malaysian ringgit per ton compared to Monday (30/10/2017), crude palm oil / crude palm oil (Malaysia) price potentially strengthened in trading on Tuesday (31/10/2017).
"This is due to the optimistic report on Malaysian CPO exports as well as production growth in October 2017 which is predicted to be lower than market estimates," said Faisyal, a commodity stock analyst at PT Monex Investindo Futures, in Jakarta, Tuesday (31/10/2017).
Intertek Testing Services reported on Tuesday (31/10/2017) that Malaysia's palm oil exports in October 2017 rose 2.5% to 1.407 million tons from 1.373 million tons in the previous month.
Meanwhile, Malaysia's CPO production fell 1.7% in September 2017 because of the high number of working days cut due to holidays. Meanwhile, Malaysia's CPO production in October 2017 is expected to be lower than expected.
Faisyal said, with Malaysia's CPO price level at today's trading open, its resistance point is estimated at 2,835 ringgit per ton.
"But if the point of resistance can be penetrated, then the price of CPO Malaysia will continue to increase to reach 2860 ringgit per ton," said Faisyal.
Meanwhile, Faisyal, Malaysia's CPO price support point is estimated at 2,800 ringgit per ton. Therefore, if the support point is broken, then Malaysian CPO price is estimated to be 2,770 ringgit per ton. (Abraham Sihombing)