Today, Malaysian CPO Price Ranges RM2.550-2.620 per Ton
By : Abraham Sihombing And Aldo Bella Putra | Tuesday, January 09 2018 - 21:00 IWST
Kebun Kelapa Sawit (Ist)
INDUSTRY.co.id - Jakarta - Malaysian crude palm oil (CPO) price is expected to strengthen again in the range of RM2,550-2,620 per ton. That's because of the potential increase in CPO demand after CPO export tax increase delayed by the Malaysian government.
Earlier this week, CPO price was depressed due to the strengthening of Malaysian Ringgit (RM) exchange rate. The appreciation of the Malaysian currency makes CPO prices expensive. However, the price of CPO rose at the end of the trading session due to expectations of an increase in demand.
"The postponement of CPO export tax increase is expected to push prices to become more competitive, so demand increases and boosts the selling price," said Putu Agus Pransuamitra, an analyst at PT Monex Investindo Futures.
The Malaysian government reportedly delayed the increase in CPO export tax for three months, from January 8, 2018 to April 7, 2018.
"Nevertheless, the increase in CPO tax is likely to be done before the three months ended if the CPO reserves in Malaysia decreased to 1.6 million tons," said Putu.
As is known, Malaysia's total CPO reserves in November 2017 recorded as much as 2.56 million tons. It was the highest reserve in the last two years.
The condition is one of the factors that crushed CPO prices to the lowest position in the last six months in mid-December 2017 ago. (Abraham Sihombing)