Decrease in Soybean Oil Price Has Potential to Press CPO Price at Weekend

By : Abraham Sihombing And Aldo Bella Putra | Friday, December 08 2017 - 21:30 IWST

INDUSTRY.co.id - Jakarta - The price of crude palm oil (CPO) Malaysia on this weekend, Friday (08/12/2017), will be in the range of 2,360-2,450 ringgit per ton. CPO price has the potential to decline due to the decline in soybean oil prices and the strengthening of the ringgit.

The price of soybean oil on Thursday for delivery in January 2018 on the Chicago Board fell 1% on the strength of the US dollar. Meanwhile, the price of soybean oil for January delivery in 2018 in Dalian, China, also closed down 1.2%.

"The Malaysian CPO price movement will usually follow other vegetable oil price movements. Because, they are always competing in the market to achieve global vegetable oil trimming," said Faisyal, commodity stock analyst from PT Monex Investindo Futures, in Jakarta, Friday (08/12/2017).

On Thursday's trade closing, Malaysia's CPO price closed down while extending its decline to three times in the previous four trading sessions and touched a five-month low following falling prices of other vegetable oils.

"Therefore, if it has reached 2,400 ringgit per ton, then the price of CPO Malaysia has the potential to continue to be reduced to 2,360 ringgit per ton. However, if prices can continue to rise to 2,450, then it could potentially reach its highest price at 2,480 ringgit per ton," Faisyal said.

At midday, the Malaysian ringgit rate was observed at the level of 4,0754 per US dollar, rising around 0.26%. The strengthening of the Malaysian ringgit rate will make the price of palm oil more expensive for other currency owners. (Abraham Sihombing)

News Comment

Today's Industry

Gibu Mathew, Vice President and General Manager in Asia-Pacific (APAC) in Zoho Corp. (special)

Rabu, 30 November 2022 - 11:22 WIB

How to Make SaaS Work for Small and Medium-Sized Businesses

Southeast Asia's digital transformation has been impressive as the region is now poised to reach a projected digital economy worth USD360 billion by 2025. With digitalisation, the region bore…

PT Dharma Polimetal ("Dharma Group") Triputra Group automotive component manufacturing company.

Senin, 28 November 2022 - 12:15 WIB

DRMA Remains Optimistic 2023 Automotive Still Rises, Targets Sales Up 20%

PT Dharma Polimetal Tbk (“DRMA”), a listed company engaged in automotive component manufacturing business sees the prospects for the automotive business in 2023 will still remain promising.…

Alvara Research

Sabtu, 26 November 2022 - 06:20 WIB

Turnover Rises High, Culinary MSMEs No Problem Paying OFD Platform Commissions

Online food delivery (OFD) services have accelerated the growth of food and beverage (F&B) MSMEs in Indonesia by 1.9 times faster compared to offline sales. OFD platforms enable MSMEs to have…

KB Bukopin Building. (Photo: Kompas.com)

Kamis, 24 November 2022 - 20:43 WIB

Shares Price Falling, Deficit IDR 6.99 Trillion, KB Bukopin Investors Not to Expect Dividends

The shareholders hope of issuers listed on the Indonesia Stock Exchange is of course to produce investment results in the form of capital gains and dividends obtained from the positive performance…

A Health exhibition of Banten Province on November 3-5, 2022 at ICE BSD, South Tangerang, Banten. (Photo: Banten Province PR)

Jumat, 18 November 2022 - 16:14 WIB

Premier Bintaro Hospital Assigned as Banten Medical Tourism Hospital

Banten Province hosted the 58th National Health Day by holding a health exhibition on November 3-5, 2022 at the Indonesia Convention Exhibition (ICE) BSD, South Tangerang, Banten.