Beware of Production Increase, Malaysia CPO Price Potentially Down
By : Abraham Sihombing And Aldo Bella Putra | Monday, November 20 2017 - 20:00 IWST
INDUSTRY.co.id - Jakarta - The price of crude palm oil (crude palm oil / CPO) Malaysia is expected to go back down in trading Monday (20/11/2017).
"The reason is that market players are considering increasing import taxes on vegetable oils in India and the projected increase in production," said Faisyal, an analyst at PT Monex Investindo Futures, in Jakarta on Monday (20/11/2017).
The Indian government has raised import duty for CPO to 30% from the previous 15% in an effort to limit cheaper CPO shipments and increase local CPO prices to support local farmers.
According to a Reuter’s survey, Indonesia's CPO production is likely to rise 8.8 percent from 3.63 million tons to 3.95 million tons in September 2017.
Hasan Hasril Siregar, Director of Indonesian Palm Oil Research Institute, said that CPO production in October 2017 should be higher because it is the peak of the harvest season.
"Palm oil production in November 2017 is expected to return to the level as in September," said Hasan.
In today's trading, market participants will be waiting for reports of CPO exports from the company Cargo Surveyor ITS and Cargo Surveyor SGS for the amount of demand for palm oil.
Meanwhile, the Malaysian ringgit today has the potential to move in the range of 2,620-2,730 per US dollar. The nearest support point is predicted to be at 2.650 with the nearest resistance point at 2700. (Abraham Sihombing)