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

Bank Indonesia

Minggu, 22 Juli 2018 - 00:30 WIB

BI denies rate of reference weaken Rupiah

Jakarta - Bank Indonesia rejected that the 7-Day Reverse Repo Rate (MFI) rate of 5.25 percent on Thursday was one of the causes of the weakening of the rupiah on Friday (20/7/2018)

Fuad Amin (Foto dok industry.co.id)

Minggu, 22 Juli 2018 - 00:00 WIB

KPK Expects Several Rooms in Sukamiskin Prison

Bandung - The Corruption Eradication Commission (KPK) ransacked a room that allegedly served as the Chief of Correctional Institution (Kalapas) Sukamiskin Wahid Husen on Saturday morning (21/7/2018)

Pgn (Istimewa)

Sabtu, 21 Juli 2018 - 23:30 WIB

PGN Starts Flowing Industrial Gas Shoelaces in Pasuruan

Surabaya - PT Perusahaan Gas Negara (PGN) began to deliver gas to the shoelace industry in Pasuruan regency, East Java, to PT Rajawali Cakra Sakti with a total contract volume of 10,000-15,000…

Blok Migas (Foto Eksplorasi.ID)

Sabtu, 21 Juli 2018 - 23:00 WIB

Bojonegoro Oil Service Rewards World Oil

Bojonegoro - PT Pertamina EP Asset 4 Field Cepu, Central Java, provides compensation for services to traditional oil miners including to PT Bojonegoro Bangun Sarana (BBS) which manages oil wells…

Kebun Kelapa Sawit (Ist)

Sabtu, 21 Juli 2018 - 22:30 WIB

GAPKI Lobby Pertamina To Absorb Palm Oil

Surabaya - The Indonesian Palm Oil Entrepreneurs Association (Gapki) is trying to lobby PT Pertamina through the government to absorb the palm oil harvest which is quite high in 2018, but is…