PALMOILMAGAZINE, JAKARTA – On Thursday (22/6/2023), the price of crude palm oil (CPO) experienced its third consecutive decline at the Bursa Malaysia Derivatives Exchange. This drop was attributed to the decreasing cost of soyoil, which followed a disappointment in the US biofuel mandate estimations.
According to Reuters, the benchmark contract for CPO, identified by the code FCPOc3, and set for September 2023 delivery, decreased by 1.16% during the trading session. The price settled at RM 3,572 (US$ 769.33) per metric ton. This downward trend marked a loss of 3.76% over the course of the previous two sessions.
The decrease in CPO price can be attributed to the cheaper cost of soyoil, driven by a lower-than-expected US biofuel mandate. The market reaction reflected the disappointment among stakeholders regarding the revised estimations.
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On Wednesday, (21/6/2023), the government of Biden escalated the numbers of biofuel that should be mixed by refineries to fuel in national scale for the next three years but the plan made biofuel industries in the country disappointed and angry because ethanol mandate and biodiesel in corn – base were not high enough.
Still from Reuters, soyoil price at Chicago Board of Trade BOc2 was decreasing 1,28%. Dalian was closed for dragon boar festival.
According to Malaysian Palm Oil Board (MOPB), the Government of Malaysia maintain export tax in July 2023 for CPO that reached 8% and decreased the reference price.
Cargo surveyor – Intertek Testing Services claimed, palm oil exports from Malaysia on 1 – 20 June decreased 16,8% from the same period in May 2023. The other cargo surveyor – AmSpec Agri Malaysia also noted, the exports from Malaysia decreased 12,9%. (T2)
