CPO Price Predicted to Support Reduction in Production and Depreciation of Malaysian Ringgit
By : Abraham Sihombing And Aldo Bella Putra | Tuesday, January 16 2018 - 20:00 IWST
Kebun Kelapa Sawit (Ist)
INDUSTRY.co.id - Jakarta - The price of crude palm oil (CPO) is expected to increase and potentially move in the range of RM2.440-2.525 per ton in today's trading.
"The rise in prices is due to the projected decline in Malaysian CPO production and the depreciation of Malaysian ringgit against the US dollar," said Faisyal, commodity stock analyst at PT Monex Investindo Futures, in Jakarta on Tuesday (16/01/2018).
Nevertheless, according to Faisyal, the increase in CPO price is expected to be limited due to the emergence of a pessimistic feeling towards the export data of CPO Malaysia.
But traders in the futures markets of Kuala Lumpur generally predict that CPO production volume is declining because the volume of CPO production is in the first quarter of each year usually tend to decrease.
Meanwhile, cargo surveyor Intertek Testing Services reported that Malaysian CPO exports decreased by 7.4% on January 15, 2018 compared to the same period in the previous month.
At 11:37 GMT, Malaysian ringgit (RM) rate weakened 0.3% to 3.9575 position per US dollar. The weakening of the Malaysian Ringgit rate will make the price of palm oil cheaper for other currency owners. (Abraham Sihombing)