CPO Price in Malaysia Opens at 2,614 Ringgit Position
By : Abraham Sihombing And Aldo Bella Putra | Monday, August 07 2017 - 16:58 IWST
INDUSTRY.co.id - Jakarta - The price of crude palm oil (CPO) in Malaysia on Monday (07/08/2017) opened at 2,614 ringgit per ton, or higher than Friday (04/08/2017) of 2,605 ringgit per ton . In the short term, CPO price is likely to move in the price range 2590-2625 ringgit per ton.
"The increase in CPO price is caused by positive sentiment in line with increasing demand for CPO exports, rising crude oil prices and the depreciation of the ringgit rate," said Faisyal, an analyst of PT Monex Investindo commodity products in Jakarta, Monday (07/08/2017).
Faisyal said CPO price is still likely to continue to decline further in at once test the next support point at position 2565 ringgit per ton.
"If the support point has been tested, then the CPO price will then move to a resistance point of 2625 ringgit per ton and will continue to try to test the next resistance point at 2,655 ringgit per ton," Faisyal said.
According to a survey results in Malaysia, Malaysia's CPO export volume in July 2017 posted a 4% increase to 1.43 million tons. This is due to increased shipments to China and Europe.
Baker Huges, an American energy services company, launched West Texas Intermediate (WTI) crude oil price on Monday (07/08/2017) to $ 49.59 a barrel. The price is close to its recent 9-week high. The increase came after US oil producers closed the operation of 1 oil rig in the weekly period ending on 4 August 2017 to 765 units.
Meanwhile, the weakening of the ringgit exchange rate against the US dollar (US) helped boost CPO prices. At 10:34 GMT, the ringgit rate weakened 0.05% to 4.279 per US dollar. Depreciation of the ringgit rate will result in CPO prices being cheaper for currency owners other than the ringgit. (Abraham Sihombing)