Depreciation of Malaysian Ringgit Expected CPO Price Increase Hike
By : Abraham Sihombing And Aldo Bella Putra | Tuesday, March 20 2018 - 17:00 IWST
Kebun Kelapa Sawit (Ist)
INDUSTRY.co.id - Jakarta - The rise of crude palm oil (CPO) price in the closing session on Monday (19/03/2018) yesterday to RM2.425 per ton position and the weakening of the Malaysian Ringgit (RM) exchange rate is expected to support the increasing demand for CPO will ultimately sustain the rise in CPO selling prices.
"The price of CPO for June 2018 shipment on Bursa Malaysia Derivatives Exchange rose 0.4% to RM2,425 per ton at the close of trading Monday (19/03/2018) after falling to RM2.407 per ton early in the session," said Arie Nurhadi, an analyst at Monex Investindo Futures Research Department, Tuesday (20/03/2018).
According to the release of published data, Malaysian CPO exports fell 2-5% in the first half of March 2018 compared to the same period in February 2018.
"The realization of the increase in CPO demand is expected to come from the Middle East. The reason, they will start doing stock purchases of CPO ahead of the holy month of Ramadan which began in mid-May 2018, "said Arie.
Meanwhile, the RM exchange rate against the US dollar (US) in trading on Tuesday (20/03/2018) was fluctuating in the range of RM2.263-2.563. (Abraham Sihombing)