Today's CPO Price Expected to Continue Increase

By : Abraham Sihombing And Aldo Bella Putra | Wednesday, January 24 2018 - 20:00 IWST

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

INDUSTRY.co.id - Jakarta - The price of crude palm oil (CPO) Malaysia is expected to continue its rise in trading session Wednesday (24/01/2018) this. The price of Malaysian CPO has the potential to move at a price range of RM2,440-2,535 per ton.

"Although the strengthening of the Malaysian Ringgit (RM) may limit price increases, the outlook for production decline and other vegetable oil price increases is predicted to be a positive sentiment for CPO price hikes today," said Faisyal, Research Staff & Market Analyst at PT Monex Investindo Futures, in Jakarta, Wednesday (24/01/2018).

Malaysian CPO prices on Tuesday traded closed up in two consecutive trading sessions of 0.8% to RM2.494 per ton position on the Malaysi Derivatives Exchange.

A CPO trader in Kuala Lumpur said that Mayaksia's CPO production from January 1-20, 2018, has been cut by 17% compared to the same month in the previous month.

Faisyal said that CPO production volume is expected to continue to experience seasonal decline in the first quarter of each year before returning again to peak production increase in the third quarter of each year.

"For March 2018 delivery contracts, the price of soybean oil on the Chicago Board of Trade (CBOT) rose 0.6%. The commodity for May 2017 delivery contract on Dalian Commodity Exchange closed up 0.7%," Faisyal said.

Meanwhile, Faisyal said, the negative sentiment for CPO price today could potentially come from the strengthening of Ringgit at 10:54 pm. Malaysia's currency strengthened 0.24 percent to 3.9175 per US dollar. Strengthening Ringgit will make CPO prices become more expensive for other currency owners.

Nevertheless, according to Faisyal, the upward trend in CPO price will be determined if the price of palm oil is able to penetrate RM2.500 per ton before it finally continues to go up to RM2.535 per ton.

"Similarly, the price of CPO will potentially decrease if it has reached RM2.455 per ton. If the price level has been broken, then the price of CPO will continue to decline up to RM2.440 per ton," Faisyal concluded. (Abraham Sihombing)

News Comment

Today's Industry

Menteri PUPR Basuki Hadimuljono (Foto Ist)

Jumat, 17 Agustus 2018 - 22:39 WIB

Minister Basuki Ensures There Are No New Projects Except Dam

Minister of Public Works and Public Housing (PUPR) Basuki Hadimuljono said there were no new infrastructure projects undertaken by the Government in 2019 except for dam construction.

President Joko Widodo together with Minister of PUPR Basuki Hadimuljono check the work of Bocimi Toll

Jumat, 17 Agustus 2018 - 22:37 WIB

Infrastructure Development Grows a New Economic Center

Infrastructure development carried out by the government in various regions can foster new economic centers, said the Chancellor of the University of Jenderal Sudirman (Unsoed) Purwokerto Professor…

Presiden Joko Widodo (Foto: Ist)

Jumat, 17 Agustus 2018 - 22:36 WIB

2019, the Government will Prepare 905 Km of Toll Roads and 48 Dams

In addition to increasing the development of human resources, President Joko Widodo (Jokowi) said, the Government also continued infrastructure development.

Illustration of Commuter Line KRL

Jumat, 17 Agustus 2018 - 22:34 WIB

KCI Launches 2018 Asian Games Commuter Edition Card

PT Kereta Commuter Indonesia (KCI) launched a multi-trip card (KMT) special edition of the Asian Games by taking inspiration from the 2018 Asian Games mascot.

Minister of PUPR Reviewed Infrastructure Projects in Papua (Photo Humas)

Jumat, 17 Agustus 2018 - 22:32 WIB

Infrastructure Development is the Same as Development of Civilization

President Joko Widodo believes there are still many parties who misunderstand when the government is aggressively building physical infrastructure such as toll roads, airports, including mass…