Today, CPO Price Moves in Range RM2.450-2.560 per Ton

By : Abraham Sihombing And Aldo Bella Putra | Tuesday, February 06 2018 - 21:00 IWST

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

INDUSTRY.co.id - Jakarta - Malaysian crude palm oil (CPO) price is expected to move in the range of RM2,450 - 2,560 a ton in trading on Tuesday (06/02/2018) and tends to weaken due to the outlook for export slowdown and reserve rise.

This was disclosed by Faisyal, a research staff and futures analyst at PT Monex Investindo Futures, in Jakarta, Tuesday (06/02/2018).

On Monday (05/02/2018), CPO prices rose thanks to the depreciation of the Malaysian Ringgit (RM) exchange rate and massive buying of CPO to replenish its short covering reserves.

According to survey results of two surveyor companies, shipments of CPO from Malaysia in January 2018 are expected to fall 8% to 1.31 million tons compared to the previous month. That's because of the decline in demand from China although they want to welcome Imlek.

Chinese Lunar New Year celebrations usually encourage increased CPO demand because it is used for cooking purposes during the celebration. But because the reserves of soybean oil and olive oil are quite large, it limits Chinese imports to CPO this year.

Meanwhile, total CPO final reserves are expected to rise 0.6% to 2.75 million tons compared to the position in December 2017. According to a Reuters survey. It will boost Malaysia's CPO reserves by the end of January 2018 to the highest level since November 2015.

High reserves can push down the price of CPO, which is mostly produced by Malaysia and Indonesia. CPO can be used as raw material for producing soap and vegetable oil.

"In the future, the price of CPO can reach RM2.560 per ton. That might happen if the price can penetrate RM2.520 per tonne first. But if the price of CPO has weakened up to RM2,480, that means, the price of CPO potentially reaches the lowest point at RM2.450 per ton," Faisyal concluded. (Abraham Sihombing)

News Comment

Today's Industry

Photo: Aris Nurjani/VOI

Rabu, 28 Februari 2024 - 12:47 WIB

Carsurin and NBRI Strengthen Strategic Alliance to Propel Indonesia’s EV Industry

PT Carsurin Tbk ("Carsurin") and the National Battery Research Institute ("NBRI") are pleased to announce the signing of a pivotal Strategic Alliance Agreement (SAA), marking a significant advancement…

Beras (Foto/Rizki Meirino)

Rabu, 21 Februari 2024 - 08:43 WIB

Gov’t to Continue Disbursing Rice Assistance

President Joko “Jokowi” Widodo has ensured that the Government will continue rolling out the rice assistance program for low-income families. The President made the statement when handing…

Ilustrasi pabrik beras. (Foto: DetikFood)

Rabu, 21 Februari 2024 - 08:40 WIB

Bapanas Head Ensures Availability of Rice Stock Ahead of Ramadan

The National Food Agency (Bapanas) has ensured the availability of rice for the fasting month of Ramadan and Eid al-Fitr 1445 Hijri/2024 CE. “We believe that there is enough rice for the fasting…

Receives Chairman of Jababeka (KIJA), Menpora Dito Ready to Support the Development of Sports SEZs

Rabu, 21 Februari 2024 - 08:23 WIB

Receives Chairman of Jababeka (KIJA), Menpora Dito Ready to Support the Development of Sports SEZs

Chairman of PT Jababeka Tbk (KIJA), Setyono Djuandi Darmono met the Minister of Youth and Sports of the Republic of Indonesia (Menpora RI) Dito Ariotedjo at the Kemenpora RI Office, Senayan,…

The Indonesian Embassy in Cairo Receives Aid for Palestine

Senin, 19 Februari 2024 - 17:39 WIB

The Indonesian Embassy in Cairo Receives Aid for Palestine

The Indonesian Embassy in Cairo welcomes the Radjiman Wedyodiningrat Warship (RJW-992) which arrived at the Al Arish Port, North Sinai Province of Egypt at 8.00 A.M. Cairo local time (13/02).…