Increased Threat of US-China Trade War Increases Malaysian CPO Prices
By : Abraham Sihombing And Aldo Bella Putra | Monday, August 06 2018 - 20:00 IWST
Kebun Kelapa Sawit (Ist)
INDUSTRY.co.id - Jakarta - Malaysia's price of crude palm oil (CPO) in Monday trading (08/06/2018) opened at RM2,209 per ton, 0.59% higher than the closing at the end of last week at RM2,196 per tons.
Until the end of the first trading session today, the price of Malaysian CPO moved in the range of RM2,202-2,215 per ton compared to the price range of the palm oil commodity at the end of last week at RM2,179-2,198 per ton.
"Based on these data, it is seen that the price of Malaysian CPO weakened before finally closing higher at the end of last week. This condition is expected to continue this week, "said Arie Nurhadi, research analyst at PT Monex Investindo Futures, in Jakarta, Monday (08/06/2018).
Arie explained, the negative sentiment in this week's trade would appear to be due to market players' anxiety about the trade war between the United States (US) and China.
At the end of last week, according to Arie, the contract price of CPO sales for October 2018 delivery on the Malaysia Derivatives Exchange rose 0.2% to RM2,196, equivalent to US $ 538.24 per ton. Overall, over the past week, Malaysian CPO prices rose 0.5%.
Meanwhile, according to Arie, the price of the Malaysian CPO sales contract for October 2018 delivery this afternoon was recorded to increase 0.8% to RM2,214 or equivalent to US $ 543.31 per ton. Previously, the selling price had risen 0.9% to RM2,215 per ton.
"The lack of positive market fundamentals and the strengthening of the Malaysian Ringgit will tend to limit the movement of CPO prices," Arie added.
On Thursday last week, China said that the bamboo curtain country would retaliate if the US raised import tariffs from various other Asian countries. The reason is, if the US plan is realized, then the US-China trade war will continue to increase.
Even before, American President Donald Trump had instructed US trade officials to see a tariff increase of up to 25% from 10% initially for various imported goods from China worth a total of US $ 200 billion. (Abraham Sihombing)