PALMOILMAGAZINE, JAKARTA – Crude palm oil (CPO) experienced a noticeable drop in prices at the Malaysia Derivatives Exchange on Monday, September 18, 2023, following three consecutive sessions of price increases.
This decline was influenced by the reduced prices of other vegetable oils in the market.
As reported by Reuters, the reference contract for CPO, designated as FCPOc3 and set for December 2023 delivery at the Malaysia Derivatives Exchange, decreased by RM 84 or approximately 2.19%. This brought the price down to RM 3,746 (equivalent to US$ 799.57) per metric ton during the early trading session. Furthermore, it marked a 1.17% decrease compared to the previous week.
Notably, other vegetable oil contracts were affected as well. The soyoil contract with the code DBYcv1 at Dalian experienced a 1.87% reduction, while the CPO contract with the code DCPcv1 also declined by 2.58%. Additionally, soyoil prices at the Chicago Board of Trade (BOc2) decreased by 0.64%.
The interconnectedness of palm oil and other vegetable oil prices highlights their competition for market share in the global vegetable oil trade. This dynamic plays a pivotal role in influencing price movements within the industry.
As quoted from Ministry of Trade Indonesian Republic, CPO reference price would be US$$ 798,83 per ton on 16 – 30 September or cheaper from the previous period. CPO out fee is US$ 33 per ton and levey is US$ 85 per ton. The numbers have no change from the previous period.
Quoting from Bernama, Prime Minister of Malaysia, Anwar Ibrahim said that China plans to escalate palm oil imports that would be 250.000 ton per year.
Independent inspection company, AmSpec Agri Malaysia reported that palm oil exports from Malaysia on 1 – 15 September decreased 9.3% compared to the previous period that reached 574,936 tons only. (T2)