Exchange Rate Ringgit Weaken, Malaysia CPO Price Increases Rise

By : Abraham Sihombing And Aldo Bella Putra | Wednesday, August 09 2017 - 17:10 IWST

5166
5166

INDUSTRY.co.id - Jakarta - Crude Palm Oil (CPO) price is likely to increase along with the weakening of the ringgit exchange rate and the recovery of other vegetable oil prices. Thus disclosed Faisyal, commodity product analyst PT Monex Investindo in Jakarta, Wednesday (09/08/2017).

The price of CPO at the Malaysian Futures Exchange on Wednesday (09/08/2017) opened at 2,640 ringgit per ton, 0.53% higher than the price on Tuesday (08/08/2017) at 2,626 ringgit per ton.

Meanwhile, the price of CPO at the close of Tuesday (08/08/2017) showed an increase of about 2%, as well as the highest price increase percentage since July 25, 2017 ago.

"The increase in CPO price is triggered by soybean oil price increase in the United States and Dalian and some short covering action because oversold position has occurred in the previous trading session," said Faisyal.

The price of soybean oil at Chicago Board of Trade (CBOT) for the upcoming October 2017 delivery contract rose 0.9%. While the price of soybean oil on Dalian Commodity Exchange for January 2018 delivery contract increased 1.4%.

The Malaysian ringgit rate at 11:00 WIB was observed at 4.286 per US dollar, weakening 0.05%. The weakening of the ringgit rate has resulted in CPO prices being cheaper for other currency owners.

According to Faisyal, the price of CPO is technically estimated to move in the range of 2,615-2,665 ringgit per ton in the short run. The CPO price point of resistance is estimated to be at 2,665 ringgit per ton.

"If the resistance point can be penetrated, then the price of CPO will continue to shoot up to an estimated level of 2690 ringgit per ton," added Faisyal.

Faisyal also explained that the Malaysian CPO price support point is estimated at 2,615 ringgit per ton. If the CPO price continues to sag and touched the support point, then the price decline will continue to reach 2,585 ringgit per ton. (Abraham Sihombing)

News Comment

Today's Industry

President Jokowi tried Semarang Solo Toll Road Section III: Bawen Salatiga, at Salatiga Toll Gate, Tingkir Tengah Village, Tingkir Sub-district, Salatiga City, Central Java, Monday (25/9) afternoon. (Photo: Humas / Jay)

Selasa, 26 September 2017 - 07:56 WIB

President Jokowi Working Visit to Bali

President Joko Widodo and First Lady Iriana Jokowi continue working visit to Bali Province after inaugurating Semarang-Solo Toll Road Section III Bawen-Salatiga at Salatiga Toll Gate, Tingkir…

Mount Agung

Selasa, 26 September 2017 - 07:36 WIB

Foreign Tourists in Bali Not Affected Related to Volcanic Activity of Mount Agung

Foreign tourists (Wisman) who are enjoying holidays in Bali until now is not affected by increased volcanic seismic activity of Mount Agung which increased because the distance about 85 kilometers…

Mount Agung

Selasa, 26 September 2017 - 06:57 WIB

The Sterile Area of Gunung Agung Became Nine Kilometers

Status of Mount Agung became alert and sterile area which originally radius 6 kilometers from the peak of the mountain was expanded to 9 kilometer, and added by expansion of sectoral area which…

President Jokowi and TNI Commander Gatot Nurmantyo (Military Special Photos)

Selasa, 26 September 2017 - 06:29 WIB

Statement of the TNI Commander is not a Public Consumption

Head of Information Center (Kapuspen) TNI Maj. Gen. Wuryanto, asserted, the statement of TNI Commander General Gatot Nurmantyo about the institution ordering 5,000 weapons by taking the name…

Minister of Industry, Airlangga Hartarto

Selasa, 26 September 2017 - 05:55 WIB

Minister of Industry: Provision of Tax Allowance No Longer Based on Amount of Investment, But Manpower

Minister of Industry, Airlangga Hartarto said the Ministry of Industry is proposing to provide fiscal incentives for export-oriented labor intensive sectors in order to boost national industrial…