CPO Price Potentially Dropped Since Malaysia Exports Dropped
By : Abraham Sihombing And Aldo Bella Putra | Monday, August 21 2017 - 19:05 IWST
INDUSTRY.co.id - Jakarta - The price of crude palm oil (CPO) opened higher on Monday (21/08/2017) this morning after experiencing price increases for three consecutive days until Friday (18/08/2017) last week.
"However, the decline in Malaysian CPO exports is expected to hamper the price increase, even potentially lowering the price in the rest of the trading today," said Putu Agus Pransuamitra, an analyst of PT Monex Investindo's commodity products in Jakarta on Monday (21 / 2017).
Putu explained that the rise in CPO prices that occurred before was due to the rise in demand forecast estimates from some major CPO consumers, especially India and soybean oil price rise which is the main competitor of CPO in the vegetable oil sector.
"Usually, demand for CPO from India will increase ahead of Diwali festival in mid-October every year," said Putu.
Nevertheless, according to Putu, Intertek Testing Service published data on exports of Malaysian palm products during the period of 1-20 August 2017 which decreased by 14.7% to 679,539 tons compared to the same period in July 2017 of 796,664 tons.
"Meanwhile, the volume of CPO exports during this period fell by 49.44% to 89,510 tons compared to the previous 177,040 tons," said Putu.
At 11:04 am today, Putu said, the price of CPO was traded at 2,676 ringgit per ton on the Malaysia Derivatives Exchange with trading potential at 2,660-2,700 ringgit per ton. Meanwhile, CPO price in Indonesia Commodity and Derivatives Exchange potentially move in the range of Rp8,260-8,910 per kilogram. (Abraham Sihombing)