Increased Demand to Boost CPO Price Increase this Week
By : Abraham Sihombing And Aldo Bella Putra | Tuesday, April 03 2018 - 16:30 IWST
kelapa sawit (ilustrasi)
INDUSTRY.co.id - Jakarta - The price of crude palm oil (CPO) in trading Monday (02/04/2018) yesterday closed higher to position RM2.458 per ton. The increase in CPO prices is supported by an increase in demand, mainly from various corporations.
"The high demand for CPO as market participants are taking advantage of the momentum before the end of Malaysia's export tax suspension ends this week and the high demand for CPO from the Middle East ahead of Ramadan," said Arie Nurhadi, research analyst at PT Monex Investindo Futures, in Jakarta, Tuesday (03 / 04/2018).
Arie said that today's CPO price traded at RM2.461 per ton due to the weakening of the Malaysian Ringgit (RM) exchange rate against the US dollar. The weakening of the RM exchange rate against the US dollar was due to the emergence of trade wars between the United States and China after the two countries implemented various trade policies.
"Today's price of CPO has the potential to strengthen to RM2.472 position. If the price is reached, then the price of Malaysian CPO has the potential to reach the level of RM2.501 per ton. However, the price should be wary of having likely to erode up to RM2.384. If the price is reached, then the price of Malaysian CPO is likely to reach RM2.349 per ton, "Arie concluded. (Abraham Sihombing)