CPO Price Down Due to Projected CPO Export Data and Rupiah Appreciation

By : Abraham Sihombing And Aldo Bella Putra | Monday, January 15 2018 - 22:00 IWST

Kebun Kelapa Sawit (Ist)
Kebun Kelapa Sawit (Ist)

INDUSTRY.co.id - Jakarta - The price of crude palm oil (CPO) in trading on Monday (15/01/2018) caused investor anxiety about the decline in other commodity prices, namely wheat and crude oil, and appreciation of the ringgit exchange rate against the US dollar.

"The price of CPO is predicted to be between RM2,415-2,530 per ton. The price is likely to decline if it reaches the level of RM2.450 per ton to then break the support point of RM2,415 per ton," said Faisyal, a commodity stock analyst at PT Monex Investindo Futures, in Jakarta on Monday (15/01/2018).

However, Faisyal said, CPO price would rise if it reached RM2,500 per ton and finally the price would reach its highest point at RM2.530 per ton.

The contract value of wheat futures prices in Chicago fell by almost 3% at the end of last week. It was the biggest daily price drop after the US Department of Agriculture released data, that wheat production volume in winter this year exceeded forecasts.

Meanwhile, West Texas Intermediate (WTI) crude prices fell on Monday on investor concerns over Baker Hughes data that reported an increase in US drilling activity that could potentially increase oil production in the future.

The Malaysian Ringgit (RM) exchange rate rose 0.32% to 3.957 per US dollar position. Appreciation Ringgit will make CPO prices become more expensive for the owners of other currencies.

In addition, today's investors are looking forward to the publication of Malaysian CPO export data for the period of 1-15 January 2018 from cargo companies Intertek Testing Services and Surveillence de Generale which is usually used as a benchmark to measure global demand for CPO. (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.