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)