Malaysian CPO Price Moves in Range 2,590-2,620 Ringgit
By : Aldo Bella Putra | Friday, August 04 2017 - 19:45 IWST
INDUSTRY.co.id - Jakarta - The price of crude palm oil (CPO) in Malaysia Derivative Exchange is expected to move in the range of 2,590-2,620 ringgit per ton in trading this Friday (04/08/2017). The price of CPO is now at 2,605 ringgit per ton, which is the lowest price this week. CPO price is potential to weaken to its support level at the level of 2590 per ton.
"The price of CPO in Malaysia Derivatives Exchange has dropped for three consecutive days on Thursday (03/08/2017) yesterday, making the price of vegetable oil is likely to record the first weekly decline in three weeks," said Putu Agus Pransuamitra, commodity analyst of PT Monex Investindo, in Jakarta, Friday (04/08/2017).
Putu said the decline in CPO prices is due to market participants predict CPO production in Malaysia will increase. The condition began to press the price of CPO since Tuesday (01/08/2017) ago.
"Besides, the decrease of soybean oil price also gives negative sentiment to CPO price. It is balanced, because two weeks before the price of CPO had risen up to the highest level in the last two months is also supported by soybean oil price increase," said Putu.
Besides, Putu said, the strengthening of Malaysian ringgit rate against US dollar also gives negative sentiment to CPO price. As is known, the Malaysian ringgit today re-strengthened to the highest level throughout the last 6 weeks.
Meanwhile, CPO prices in Indonesia's Commodity and Derivatives Exchange today moved in the range of Rp8,200-8,610 per kilogram. (Abraham Sihombing)