Malaysian CPO Price Stable at RM2.200 per Ton
By : Abraham Sihombing And Aldo Bella Putra | Thursday, July 19 2018 - 23:59 IWST
Kebun Kelapa Sawit (Ist)
INDUSTRY.co.id - Jakarta - The price of crude palm oil (CPO) opened at the level of RM2.203 per tonne on Thursday (19/07/2018). In the first session of trading today, Malaysia's highest price of Malaysian palm oil was at RM2.220 per tonne and its lowest price of RM2,185 per ton.
"In the first session of trading today, the price of CPO Malaysia was down. Technically, the decline was due to the soaring price of CPO in yesterday's trade. In addition, demand in the first session of trading today also eased, "said Arie Nurhadi, research analyst at PT Monex Investindo Futures, in Jakarta, Thursday (19/07/2018).
Therefore, Arie said, the price of CPO for October 2018 at Malaysia Derivatives Exchange today reached the highest price this week at RM2,220 per ton or equivalent to US $ 547.20 per ton. However, the price fell 0.4% to RM2.203 per ton.
Arie explained that Malaysian CPO price on Wednesday (18/07/2018) closed at RM2.211 per ton, with the lowest price of RM2,178 per ton and the highest price of RM2,218 per ton.
On Wednesday, according to Arie, the price of CPO in Malaysia futures market is up more than 2%. It was the highest price in the past week. The rise was underpinned by the depreciation of the Malaysian Ringgit (RM) exchange rate against the US dollar and the recovery of prices for other vegetable oil products.
The price of CPO for delivery in October 2018 at Malaysia Derivatives Exchange on Wednesday (18/07/2018) rose 1.8% to RM2,211 or equivalent to US $ 544.98 per ton. Previously, the highest price of CPO reached RM2,218 per tonne on July 11, 2018.
"Thus, the depreciation of the RM exchange rate makes CPO prices technically rebound, even recovering after having reached below RM2,200 per ton," added Arie.
As is known, RM is the local currency of Malaysia used to make CPO transactions. On Wednesday, the RM exchange rate weakened 0.3% to RM4,0570 per US dollar, the lowest rate since late December 2017. The condition has made CPO cheaper for foreign buyers. (Abraham Sihombing)