PALMOILMAGAZINE, KUALA LUMPUR – According to senior analysis from Fastmarkets, Sathia Varqa, this week’s crude palm oil (CPO) contract at Bursa Malaysia Derivatives Exchange demands heightened awareness due to traders closely considering the interest rate decision from the Federal Reserve USA scheduled for Wednesday (19/7/2023).
Varqa highlighted that any potential increase in interest rates could have implications on the currency of developing countries, including the ringgit.
Despite the good supporting climate leading to increased production compared to the previous month, CPO importer countries are still receiving higher quantities of CPO, which may result in a postponement of CPO exports. As a result, traders are advised to exercise caution in their CPO dealings during this period.
As Palmoilmagazine.com quoted from The Star, many analysis predicted CPO would not remain at RM 4000/ton because the fundamental is weak still.
Also Read : CPO at Malaysia Exchange Got Cheaper for Ringgit Decreased towards US Dollar to Stop the Loss
The traders would still observe other vegetable oil trade agreement in Black Sea this week. CPO reference price at Bursa Malaysia Derivative Exchange in weekly in August 2023 could increase RM 149 to be RM 3.993 per ton and September 2023 contract could be increasing RM 136 to be RM 4 .017 per ton. (T2)
