PALMOILMAGAZINE, JAKARTA – Crude palm oil (CPO) on the Malaysia Derivatives Exchange experienced a weekly price decline for the first time in the last four weeks. This decrease occurred on Friday (8/9/2023) due to continuous other vegetable oils got cheaper and the anticipation of higher production by the end of August 2023.
As reported by Reuters, the reference contract price for CPO with the code FCPOc3, scheduled for delivery in November 2023 on the Malaysia Derivatives Exchange, dropped by RM 46 or 1.2% in early trading, reaching RM 3,786 (US$ 810.01) per metric ton. This marked the lowest price observed in the past four weeks.
CPO contract price got decreasing 6,3% in a week and it was the fifth session in a row.
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Senior at Fastmarkets Palm Oil Analytics, Sathia Varqa said the exchange got massive liquidation in this week because trade dynamic was in the same time when other vegetable oils got cheaper. “In addition, there is a projection that palm oil production in August would be more than the decreasing exports, namely heading to the release by Malaysian Palm Oil Board (MPOB),” Sathia Varqa said.
Soyoil harvest in Argentina in 2023/24 could be reaching 50 million metric tons or the highest in the past five years, and increased from 21 million tons from the previous harvest. This happened for El Nino that would make rain fall in the region.
Still from Reuters, soyoil contract price at Dalian with the code DBYcv1 decreased 1,58%, CPO contract with the code DCPcv1 did too 1,52%. Soyoil price at Chicago Board of Trade BOcv1 did decrease 0,56%. (T2)