Profit Taking Action Still Continues to Suppress Malaysian CPO Price
By : Abraham Sihombing And Aldo Bella Putra | Friday, August 25 2017 - 20:00 IWST
INDUSTRY.co.id - Jakarta - The price of crude palm oil (CPO) in Malaysia's Dervative Exchange at 11:17 pm was observed at 2,749 ringgit per ton. Malaysian CPO is estimated to be transacted at a price range of 2,730-2,770 ringgit per ton.
"Malaysia's CPO price has weakened since today's trade opening. That's because Malaysian CPO exports decline reports that are constantly pushing profit-taking. In fact, the day before (Thursday, 24/08/2017), the price of CPO Malaysia had reached the highest price in the last five 5 months," said Putu Agus Pransuamitra, an analyst of PT Monex Investindo commodity products, Friday (25 / 2017).
Previously, Intertek Testing Services reported that Malaysian palm oil exports during the period from 1 to 25 August 2017 decreased 8.1% to 934,544 tonnes compared to the same period in July 2017.
Meanwhile, Putu said, the price of CPO on Thursday (24/08/2017) reached its highest point in the last 5 months, driven by expectations of a lower production increase compared to previous estimates. Until Thursday, Malaysian CPO price has even recorded a rise for 7 consecutive days.
Besides, according to Putu, soybean oil price increase which became the nearest competitor of CPO also become one of the factors that make Malaysia CPO price performance become impressive since last week. The price of soybean oil on the Chicago Board of Trade (CBOT) rose after reports that US soybean exports rose higher than expected. (Abraham Sihombing)