Malaysian Production Data Weighed CPO Prices This Weekend
By : Abraham Sihombing And Aldo Bella Putra | Friday, August 11 2017 - 17:01 IWST
INDUSTRY.co.id - Jakarta - Malaysian Palm Oil Board (MPOB), an official institution that manages Malaysia's crude palm oil (CPO) trade, on Thursday (10/08/2017) published an official announcement that Malaysia's CPO production rose 16.8% to 1.89 million tons in July 2017 compared to the previous month's 1.78 million tons.
Official publication on the Malaysian CPO production was responded negatively by the market, so the CPO price on Friday (11/08/2017) is expected to decline in Malaysia after opening weakened to the level of 2636 ringgit per ton.
"The negative response arises because the increase in CPO production volume is higher compared to the results of a poll conducted by Reuters to the previous market participants who predicted the increase is only 6.5%," said Faisyal, an analyst of PT Monex Investindo commodity products in Jakarta, Friday 11/08/2017).
Meanwhile, Malaysian government data showed that CPO production in July 2017 increased 20.7% to 1.83 million tons. The data is also higher than the growth estimate of only about 11% to 1.68 million tons.
"Despite the data, Malaysia's CPO price decline is also triggered by the continued decline in global crude oil prices due to market anxiety about high supply in the global market," he added.
Faisyal also said that CPO price in Friday's trade is predicted to move between 2,570-2,700 ringgit per ton. The price of CPO is expected to hit the previous level of 2600 ringgit per ton before it finally slumped at 2,570 ringgit per ton.
"If there is a trend of price increase, then CPO price will attempt to break the level of 2,675 ringgit per ton before finally reaching the level of 2,700 ringgit per ton," Faisyal concluded. (Abraham Sihombing)