Worry about Production Outlook, Malaysian CPO Price Still Potentially Down
By : Abraham Sihombing And Aldo Bella Putra | Tuesday, August 08 2017 - 13:26 IWST
INDUSTRY.co.id - Jakarta - Despite opening at 2,589 ringgit per ton, slightly higher than the previous day, crude palm oil (CPO) prices are expected to fall on Tuesday's trade (08/08/2017).
"The reason is that market players are still worried about the CPO production data in July 2017 which will be officially published by Malaysian Palm Oil Board (MPOB) on August 10, 2017," said Faisyal, an analyst of PT Monex Investindo commodity products in Jakarta, Tuesday / 08/2017).
Faisyal said the price of CPO in trading today was also influenced by negative sentiment arising from the decline in crude oil prices in line with the increase of Libyan crude oil production after recovery of production in Sharara oil field, which is the largest oil field in the country Gaddafi.
In addition, a poll conducted by Reuters on 9 CPO traders, palm oil planters and CPO analysts informed, Malaysian palm fruit bunches production in July 2017 rose 11% to 1.68 million tons. The condition caused Malaysia's CPO reserves to increase 6.5% to 1.63 million tons.
Technically, Faisyal said, the price of CPO in Malaysia is expected to move in the range of 2540-2630 ringgit per ton. The support point is expected to reach 2,540 ringgit per ton. However, before penetrating the support point, CPO price will first test the support level 2,580 ringgit per ton.
"Meanwhile, the resistance point is estimated at 2,600 ringgit per ton. If the level has been reached, then the price of CPO has a chance to break the price level of 2630 ringgit per ton " Faisyal concluded. (Abraham Sihombing)