Import Tax Raised, Malaysian CPO Price Potentially Down
By : Abraham Sihombing And Aldo Bella Putra | Friday, November 03 2017 - 21:00 IWST
Kebun Kelapa Sawit (Ist)
INDUSTRY.co.id - Jakarta - Malaysia's crude palm oil (CPO) price decline is expected to continue due to a rise in import taxes imposed by the Indian government and falling prices of other vegetable oils.
In Malaysian Derivatives Exchange today, Malaysian CPO price potentially moves in the range of 2,780-2,830 ringgit per ton.
"The price of CPO for January 2018 delivery contract closed down 0.6% to 2,821 ringgit per tonne in yesterday's trading. It was caused by the decline in soybean oil prices at the Chicago Board of Trade (CBOT)," said Faisyal, commodity market analyst at PT Monex Investindo Future, in Jakarta, Friday (03/11/2017).
Faisyal said Reuters reported that India, which is the world's biggest consumer of palm oil, is rumored to be raising import taxes on crude oil and edible oil to protect their local farmers.
Meanwhile, Faisyal said, the strengthening of the Malaysian ringgit rate also contributed to the fall in Malaysian CPO prices. The reason is, if the ringgit strengthens, then the price of CPO becomes more expensive for the owners of other currencies.
At 11:12 pm, the Malaysian ringgit rate was observed to rise 0.02% to 4.2335 per US dollar. (Abraham Sihombing)