PALMOILMAGAZINE, KUALA LUMPUR – The contract price of Crude Palm Oil (CPO) at the Malaysia Derivatives Exchange surged on Friday (18/8/2023), marking the week’s consistent price hike, driven by the decline in the ringgit currency and the rise in the cost of other vegetable oils.
According to information from Reuters, the reference contract price for CPO with the code FCPOc3, scheduled for delivery in November 2023 at the Malaysia Derivatives Exchange, experienced a noteworthy increase of RM 9 or approximately 0.23%, reaching RM 3,932 per metric ton during early trading. This upward momentum marked the continuation of a fourth consecutive session of price gains. Throughout the week, the CPO contract price escalated by an impressive 5.9%.
On the preceding Thursday, the European Union (EU) declared that it was investigating whether biodiesel produced by Indonesia was potentially evading EU taxes through transactions involving China and England.
Meanwhile Ringgit MYR, the official currency in palm oil trade got cheaper 1,2% towards US dollar in this week. It managed palm oil got cheaper for traders that transact in foreign currency.
Still from Reuters, soyoil contract price at Dalian with the code DBYcv1 increased 1,1%; CPO contract with the code DCPcv1 increased 1,1%. Soyoil price at Chicago Board of Trade BOcv1 also increased 0,6%. It happened for the fifth session because of the dry and hot weather in Midwest, USA, and could be decreasing numbers of production.
Palm oil has something to do with other vegetable oil price because they compete to get part of vegetable oil trade globally. (T2)