Ringgit Stronger, CPO Price Weighted Continued
By : Abraham Sihombing And Aldo Bella Putra | Tuesday, December 05 2017 - 21:30 IWST
Lahan Kelapa Sawit (Ist)
INDUSTRY.co.id - Jakarta - The price of crude palm oil (crude palm oil / CPO) Malaysia for delivery in February 2018 at today's trading transacted 2,562 ringgit per ton.
"That means, CPO prices continue to fall after the decline in prices that occurred yesterday (Monday, December 4, 2017 - ed) by 0.6% to 2588 ringgit per ton compared to last weekend's trading session," said Faisyal, commodity stock analyst from PT Monex Investindo Futures, in Jakarta, Tuesday (05/12/2017).
Faisyal said the fall in Malaysia's CPO price was due to the strengthening of the ringgit exchange rate against the US dollar (US). The Ringgit exchange rate today rose 0.4 percent to 4.0525 per dollar.
"The appreciation of the ringgit rate tends to depress the price of CPO as it can reduce export demand," Faisyal added.
The previous CPO price had risen to a one-week high as it followed the soybean oil rise due to the dry weather that hit Argentina and possibly harming the crop.
In addition, CPO production in Malaysia is likely to be disrupted by floods on the eastern coast of Peninsular Malaysia and the rainy season in Malaysia by the end of this year which could potentially slash production in November also shore up previous CPO prices. (Abraham Sihombing)