Exchange Rate Ringgit Weaken, Malaysia CPO Price Increases Rise
By : Abraham Sihombing And Aldo Bella Putra | Wednesday, August 09 2017 - 17:10 IWST

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)
Read Also
ISPO to Leverage Palm Oil Competitiveness Level?
Rebranding Indonesian Palm Oil: A Lesson of Starbucks Traceability…
Ministry of Trade Holds 12th Gambir Trade Talk 'Indonesia's Foreign…
Wilmar International and LDC Visit Orangutan Conservation Area on…
Sawit Sumbermas Sarana Prioritizes Commitment to Protect the Environment…
Today's Industry

Jumat, 02 Mei 2025 - 10:46 WIB
Binawan and Government Support Indonesian Nurses in Europe through Scholarships
In the midst of the viral #KaburAjaDulu hashtag as a symbol of the young generation's disappointment with domestic working conditions, Binawan responded with real action: dispatching Indonesian…

Jumat, 28 Maret 2025 - 22:21 WIB
SUNeVision Initiates MEGA IDC Phase Two Development
SUNeVision, the technology arm of Sun Hung Kai Properties (SHKP), today announced the commencement of construction for Phase Two of MEGA IDC in Tseung Kwan O. As Hong Kong's largest data centre…

Jumat, 28 Maret 2025 - 22:07 WIB
TDL Records New Revenue Record of IDR 25 Trillion in 2024 Ahead of 50th Anniversary
PT Metrodata Electronics Tbk (MTDL), the largest technology Company with the most complete IT and telecommunications products in Indonesia, managed to record a revenue of IDR 25 trillion in…

Jumat, 28 Maret 2025 - 22:00 WIB
Wireless Logic Selected By Thales As IoT Connectivity Partner
Wireless Logic, a global leader in IoT connectivity solutions has been selected by Thales, a global leader in advanced eSIM technologies, to enable secure, scalable and resilient IoT connectivity…

Jumat, 28 Maret 2025 - 21:53 WIB
Microvista Expands International Presence with Mobile CT System ScanExpress
The German specialist in industrial computed tomography and non-destructive testing, Microvista, announces the European expansion of its innovative mobile CT system, ScanExpress. The system…
News Comment