Profit Taking Ahead of Long Holiday Potential to Press Malaysian CPO Price
By : Abraham Sihombing And Aldo Bella Putra | Wednesday, August 30 2017 - 19:00 IWST
INDUSTRY.co.id - Jakarta - The price of crude palm oil (CPO) Malaysia opened slightly higher than the previous trading session, at 2,724 ringgit per ton in trading on Wednesday (30/08/2017). However, the price of CPO has the potential to decline because it is still burdened by the sentiment of falling vegetable oil prices in the global market.
"In addition, the emergence of profit taking actions conducted by investors ahead of the long holiday Eid al-Adha celebrations starting tomorrow is also expected to again push the CPO price decline. However, the decline is predicted to be limited because Malaysian ringgit rates depreciate, "said Faisyal, an analyst of commodity products of PT Monex Investindo, in Jakarta, Wednesday (30/08/2017).
The possibility could happen after the CPO traders in Kuala Lumpur said profit taking usually occurs before the holidays, especially when the Dalian Commodity Exchange and soybean oil prices are decreasing.
As is known, Malaysia Derivatives Exchange will stop its operations on Thursday and Friday along with Idul Adha holiday that falls on September 1, 2017.
Faisyal said Malaysia's CPO price is expected to fall again and test its support point at 2,675 ringgit per ton. If the CPO price drops through that position, then it is possible to experience further decline to 2,650 ringgit per ton.
"However, if the price of CPO can continue to rise and penetrate the resistance point at 2,735 ringgit per ton, it will push the next up to penetrate the next resistance point at 2,770 ringgit per ton," Faisyal said.
Based on data available, Faisyal said, the price of soybean oil contract for delivery in October 2017 at Chicago Board of Trader (CBOT) fell 1% on Seasa (29/08/2017). Meanwhile, the price of soybean oil contract for January 2018 shipment in Dalian Commodity Exchange fell 1%.
Meanwhile, Faisyal said, the Malaysian ringgit rate until 10:58 pm was at position 4.2680 per US dollar, or weakened 0.1%. The depreciation of the Malaysian ringgit rates makes Malaysian CPO prices cheaper for other currency owners. (Abraham Sihombing)
Read Also
ISPO to Leverage Palm Oil Competitiveness Level?
Rebranding Indonesian Palm Oil: A Lesson of Starbucks Traceability…
Ministry of Trade Holds 12th Gambir Trade Talk 'Indonesia's Foreign…
Wilmar International and LDC Visit Orangutan Conservation Area on…
Sawit Sumbermas Sarana Prioritizes Commitment to Protect the Environment…
Today's Industry

Jumat, 02 Mei 2025 - 10:46 WIB
Binawan and Government Support Indonesian Nurses in Europe through Scholarships
In the midst of the viral #KaburAjaDulu hashtag as a symbol of the young generation's disappointment with domestic working conditions, Binawan responded with real action: dispatching Indonesian…

Jumat, 28 Maret 2025 - 22:21 WIB
SUNeVision Initiates MEGA IDC Phase Two Development
SUNeVision, the technology arm of Sun Hung Kai Properties (SHKP), today announced the commencement of construction for Phase Two of MEGA IDC in Tseung Kwan O. As Hong Kong's largest data centre…

Jumat, 28 Maret 2025 - 22:07 WIB
TDL Records New Revenue Record of IDR 25 Trillion in 2024 Ahead of 50th Anniversary
PT Metrodata Electronics Tbk (MTDL), the largest technology Company with the most complete IT and telecommunications products in Indonesia, managed to record a revenue of IDR 25 trillion in…

Jumat, 28 Maret 2025 - 22:00 WIB
Wireless Logic Selected By Thales As IoT Connectivity Partner
Wireless Logic, a global leader in IoT connectivity solutions has been selected by Thales, a global leader in advanced eSIM technologies, to enable secure, scalable and resilient IoT connectivity…

Jumat, 28 Maret 2025 - 21:53 WIB
Microvista Expands International Presence with Mobile CT System ScanExpress
The German specialist in industrial computed tomography and non-destructive testing, Microvista, announces the European expansion of its innovative mobile CT system, ScanExpress. The system…
News Comment