Malaysia's CPO Price Crashed to Position RM2.195 per Ton
By : Abraham Sihombing And Aldo Bella Putra | Thursday, September 20 2018 - 17:00 IWST
Kebun Kelapa Sawit (Ist)
INDUSTRY.co.id - Jakarta - The decline in the price of contracts for the sale of Malaysian crude palm oil (CPO) for delivery in December 2018 on the Malaysia Derivatives Exchange touched RM2,195 per ton on Tuesday (18/09/2018). That is the lowest price level since August 15, 2018.
According to data from Monex Investindo Futures in Jakarta, the price of Malaysian CPO has decreased by more than 2%. The price decline was caused by an increase in the volume of CPO production in the neighboring country.
In addition, the data also shows that the price decline was also caused by the trade war conducted by China with the United States (US), especially in the trade of vegetable oil.
In the China-US trade war, US President Donald Trump imposed a 10% import tax equivalent to US $ 200 billion for goods imported from China.
In fact, Trump said, "If China retaliates against US farmers or industry for the implementation, we will implement the next stage of taxation of US $ 267 billion as additional import costs."
Meanwhile, the Chinese Trade Minister revealed that US unilateralism and protectionism would harm the interests of the US and China and various global economies.
As for Wang Tao, commodity market analyst, the price of Malaysian CPO crashed far to the level of RM2,197 per ton after the price of palm oil commodities continued to slide to penetrate the support point of RM2,227 per ton. (Aaham Sihombing)