Palmoilmagazine.com, KUALA LUMPUR – On Monday (12/6/2023), the price of crude palm oil (CPO) experienced a decline at the Bursa Malaysia Derivatives Exchange. This decrease was attributed to the predicted decrease in exports during the early part of June 2023. As a result, many investors anxiously awaited the release of crucial data.
According to Reuters, the CPO reference contract with the code FCPOc3, set for delivery in August 2023 at the Bursa Malaysia Derivatives Exchange, saw a reduction of RM 25, equivalent to approximately 0.74%. This brought the price down to RM 3,342 per metric ton during the early trading session.
The anticipation surrounding the release of export data played a significant role in influencing market sentiment. Traders closely monitored these figures as they would provide valuable insights into the state of the palm oil market and help guide their investment decisions.
The decline in CPO price reflects the market’s reaction to the predicted decrease in exports. As traders awaited the release of the main data, the market exhibited caution and adjusted its pricing accordingly.
The movement in CPO prices highlights the interconnectedness of market dynamics and the influence of key indicators such as export data. Traders will continue to monitor these figures closely as they seek to navigate the ever-changing landscape of the palm oil market.
Prior, independent inspection company, AmSpec Agri Malaysia on Saturday (10/6/2023 reported that palm oil exports from Malaysia on 1 – 10 June 2023 decreased 17,6% to be 275.211 metric tons from the previous month that reached 333.779 metric tons in the same period.
Meanwhile, cargo surveyor – Intertek Testing Services noted, palm oil exports from Malaysia on 1 – 10 June decreased 16,7% to be 295.990 metric tons from May 2023 that reached 355.380 metric tons in the same period.
Still from Reuters, soyoil contract at Dalian with the code DBYcv1 increased 1,1%, CPO contract with the code DCPcv1 also increased 0,6%. Soyoil price at Chicago Board of Trade BOcv1 decreased 1,1%.
Reuters’ technical analyst, Wang Tao said, CPO could be at RM 3,308 to RM 3,341 per metric tons for it failed to get contract price at RM 3,394 per ton. (T2)