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

Photo: Aris Nurjani/VOI

Rabu, 28 Februari 2024 - 12:47 WIB

Carsurin and NBRI Strengthen Strategic Alliance to Propel Indonesia’s EV Industry

PT Carsurin Tbk ("Carsurin") and the National Battery Research Institute ("NBRI") are pleased to announce the signing of a pivotal Strategic Alliance Agreement (SAA), marking a significant advancement…

Beras (Foto/Rizki Meirino)

Rabu, 21 Februari 2024 - 08:43 WIB

Gov’t to Continue Disbursing Rice Assistance

President Joko “Jokowi” Widodo has ensured that the Government will continue rolling out the rice assistance program for low-income families. The President made the statement when handing…

Ilustrasi pabrik beras. (Foto: DetikFood)

Rabu, 21 Februari 2024 - 08:40 WIB

Bapanas Head Ensures Availability of Rice Stock Ahead of Ramadan

The National Food Agency (Bapanas) has ensured the availability of rice for the fasting month of Ramadan and Eid al-Fitr 1445 Hijri/2024 CE. “We believe that there is enough rice for the fasting…

Receives Chairman of Jababeka (KIJA), Menpora Dito Ready to Support the Development of Sports SEZs

Rabu, 21 Februari 2024 - 08:23 WIB

Receives Chairman of Jababeka (KIJA), Menpora Dito Ready to Support the Development of Sports SEZs

Chairman of PT Jababeka Tbk (KIJA), Setyono Djuandi Darmono met the Minister of Youth and Sports of the Republic of Indonesia (Menpora RI) Dito Ariotedjo at the Kemenpora RI Office, Senayan,…

The Indonesian Embassy in Cairo Receives Aid for Palestine

Senin, 19 Februari 2024 - 17:39 WIB

The Indonesian Embassy in Cairo Receives Aid for Palestine

The Indonesian Embassy in Cairo welcomes the Radjiman Wedyodiningrat Warship (RJW-992) which arrived at the Al Arish Port, North Sinai Province of Egypt at 8.00 A.M. Cairo local time (13/02).…