Malaysian CPO Price Still Affected by Negative Sentiment of US-China Trade War
By : Abraham Sihombing And Aldo Bella Putra | Friday, July 06 2018 - 18:30 IWST
Kebun Kelapa Sawit (Ist)
INDUSTRY.co.id - Jakarta - The price of crude palm oil (crude palm oil / CPO) Malaysia on Friday trading (06/07/2018) is estimated to move in the range of RM2.247-2.345 per ton. The price of CPO on Wednesday (04/07/2018) moves in the range of RM2.290-2.314.
If the two price ranges are compared, the price of CPO is seen to continue to strengthen amid the continuing negative impact on the anxiety caused by US and Chinese trade wars.
Malaysian CPO price on Wednesday (04/07/2018) closed at RM2.298 per ton and re-opened on Thursday trading (05/07/2018) at RM2.309. Thus, the price of CPO in trading yesterday looks tend to strengthen.
"However, Malaysian CPO futures prices at the close of trading Wednesday were the second straight decline. That is because still affected by the release of export data that is not in accordance with previous expectations, "said Arie Nurhadi, a research analyst of PT Monex Investindo Futures commodity exchanges, in Jakarta, Friday (06/07/2018).
Arie said the CPO price for September 2018 delivery contract on Bursa Malaysia Derivatives Exchange fell 0.7% to RM2,298 or equivalent to US $ 568.25 per ton at the end of trading on Wednesday. On the previous day, the price of CPO fell to a position of RM2,290 per ton.
"The drop in Malaysian CPO prices is likely to be caused by the erosion of soybean oil prices to the lowest level in the last two years on Monday (02/07/2018) amid the US-China trade war situation," Arie said.
On Tuesday (03/07/2018), the price of soybean oil on the Chicago Board of Trade (CBOT) for December 2018 shipments fell 0.4% before the commodities exchange closed due to the big US Independence Day holiday that falls on every July 4. (Abraham Sihombing)