Export Duty Abolition Plans Encourage Malaysia CPO Price Increase
By : Abraham Sihombing And Aldo Bella Putra | Friday, August 10 2018 - 05:30 IWST
Kebun Kelapa Sawit (Ist)
INDUSTRY.co.id - Jakarta - Malaysia's crude palm oil (CPO) price opened at RM2,249 per ton on Thursday (09/08/2018), down 0.4% compared to Wednesday's closing (08/08/2018) amounting to RM2.258.
In the first trading session today, the price of Malaysian palm oil commodities moved in the range of RM2,241-2,254 per ton compared to the price range on the previous trading day at the position of RM2,219-2,265 per ton.
"CPO prices in the Malaysian futures market rose 1% at the closing session of trading on Wednesday. That is because there is a prediction that Malaysia will abolish CPO export duties in September, "said Arie Nurhadi, research analyst at PT Monex Investindo Futures, in Jakarta, Thursday (08/08/2018).
Arie explained, the condition pushed up the price of the CPO sales contract for shipping in October 2018 on the Bursa Malaysia Derivatives Exchange by 1% to RM2.258 or equivalent to US $ 554.25 per ton.
"When the trade took place, the price of CPO had reached RM2,265 per ton which was the highest price since July 10, 2018," said Arie.
As is known, as the second largest CPO producer in the world, Malaysian authorities abolished the monthly CPO export duty if the CPO price on the Malaysian commodity exchange decreased to below the RM2,250 per ton price level.
According to data released by Eikon, according to Arie, the reference price of CPO since mid-July 2018 has reached below the level of RM2,250 per ton, with an average selling price of RM2,251 per ton.
Arie said, in the current calculation, the contract price of CPO sales for October 2018 delivery on the Bursa Malaysia Derivatives Exchange fell 0.3% to RM2,252 per ton, equivalent to US $ 553.32 per ton.
"Market participants appear to be cautious ahead of the July 2018 supply data release and a request report from the Malaysian Palm Oil Board (MPOB) on Friday," Arie concluded. (Aaham Sihombing)