Malaysian CPO Price Will Be Burdened by Decrease in Export and Appreciation of Ringgit
By : Abraham Sihombing And Aldo Bella Putra | Monday, August 28 2017 - 22:30 IWST
INDUSTRY.co.id - Jakarta - Malaysian crude palm oil (CPO) prices opened at 2,762 ringgit per tonne in early trading on Monday (28/08/2017). In the short term, Malaysia's CPO price is expected to move in the range of 2,730-2,780 ringgit per ton.
If it can penetrate 2,780 ringgit per ton, Malaysia's CPO price could potentially touch 2,800 ringgit per ton, but if the price falls below the level of 2,730 ringgit per ton, then the CPO price will likely touch the support point of 2,700 ringgit per ton.
"Despite opening higher early in the trading session on Monday (28/08/2017), the Malaysian CPO price movement is expected to be weighed down by data on export decline and strengthening Malaysian ringgit against the US dollar," said Faisyal, Commodity product of PT Monex Investindo in Jakarta, Monday (28/08/2017).
Faisyal said, Malaysia's total CPO exports during the period from 1 to 25 August 2017 fell by about 8.1%. In fact, data published by the Societe Generale de Surveilance Cargo showed that Malaysia's CPO exports dropped 8.4% in the period.
"Meanwhile, Malaysian ringgit exchange rate at 10:29 pm rose 0.2% to 4.2640 ringgit position per US dollar. The appreciation of Malaysian ringgit rates makes CPO prices more expensive for other currency owners," Faisyal said. (Abraham Sihombing)