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)
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)

News Comment

Today's Industry

Grab (Ist)

Kamis, 11 Oktober 2018 - 12:36 WIB

Women Activists Criticize GRAB Indonesia on Victims Harassment Mediation

A number of women activists express their anger and regret at the GRAB Indonesia. The Malaysian applicator response to bring together between a driver partner who is allegedly harassed his passengers…

Panen Padi (Foto Dok Industry.co.id)

Senin, 08 Oktober 2018 - 03:30 WIB

Banten Lebak Farmers Harvest 55,622 Tons of Dry Grain

Lebak-Petani in Lebak Regency, Banten, during September 2018 harvests rice in an area of ​​9,347 hectares of paddy fields with a production of 55,622 tons of dried pungut (GKP) grain.

Bawang Merah (Ist)

Senin, 08 Oktober 2018 - 03:00 WIB

Kelompok Tani Sengingi Riau Panen Bawang Merah

Kuantan Singing - Beken Jaya Benai Farmer Group in Kuantan Singingi Regency, Riau Province harvesting shallots up to tens of tons managed on a quarter hectare of land, the results can improve…

Senin, 08 Oktober 2018 - 02:30 WIB

PT Pertamina Lubricants Wins Two TOP CSR 2018 Awards

Jakarta - PT Pertamina Lubricants managed to bring home two awards at the TOP CSR 2018 TOP CSR category on Lubricants Business, namely for the Corporate Social Responsibility (CSR) Enduro Student…

Listrik Ilustrasi

Senin, 08 Oktober 2018 - 02:00 WIB

Electrical System in Central Sulawesi is 75% Normal

Jakarta - Electricity, telecommunications, roads, airports and fuel supply (BBM) infrastructure have begun to recover in areas affected by the earthquake in Central Sulawesi. Assistance from…