Last Week of Export Tax Deferral, CPO Price Still Fluctuates
By : Abraham Sihombing And Aldo Bella Putra | Tuesday, April 03 2018 - 16:00 IWST
Kebun Kelapa Sawit (Ist)
INDUSTRY.co.id - Jakarta - At the end of last week, Friday (30/03/2018), the price of crude palm oil (CPO) closed at the level of RM2.425 per ton. It was the last week of March 2018.
At the end of last week, the price of CPO was depressed by the strengthening of the Malaysian Ringgit (RM) exchange rate, but managed to close up compared to the previous day's CPO price.
"This week will be the last week of export tax suspension of CPO conducted by Malaysia since the beginning of 2018. 5% export tax regulation will be effective in Malaysia next week," said Arie Nurhadi, research analyst at PT Monex Investindo Futures, in Jakarta on Monday (02/04/2018).
Meanwhile, the price of CPO this year will be affected by weather factors. Chances are, CPO prices could fall due to increased production volume as the El Nino dry weather phenomenon occurs.
"The reason, young trees begin to produce fresh fruit bunches and ready to be harvested which will eventually increase the supply volume of CPO in the commodity market," said Arie.
Arie said, the price of CPO on Monday trading (02/04/2018) transacted by RM2.455 per ton. The price is still likely to go up to break the level of RM2.460 per ton. However, the possibility of a decline also extends to RM2.384 per ton. (Abraham Sihombing)