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)
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)